Suppose that the demand and supply functions for good X are Q d = 50 - 8P

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Suppose that the demand and supply functions for good X are

                                                    Qd = 50 - 8P
                                                    Qs = -17.5 + 10P

a. What are the equilibrium price and quantity?
b. What is the market outcome if price is $2.75? What do you expect to happen? Why?
c. What is the market outcome if price is $4.25? What do you expect to happen? Why?
d. What happens to equilibrium price and quantity if the demand function becomes Qd = 59 - 8P?
e. What happens to equilibrium price and quantity if the supply function becomes Qs = -40 + 10P (demand is Qd = 50 - 8P)?

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