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Today, we discuss how to find the equilibrium price and quantity using linear demand and supply equations. We use the example of movie tickets with demand equal to 80 minus 4p and quantity supplied equal to -20 plus 8p. To plot the demand and supply curves, we start by identifying points on both curves. The demand curve intercepts at 80,000 tickets at a price of 0. To draw the linear demand curve, we choose another price (e.g. 10) and calculate the quantity demanded. At a price of 10, the quantity demanded is 40, indicating a downward sloping curve.
