Question
1)Consider a demand curve of the form Q d = 20-2 p where Q d is the quantity demanded of a good and p is
1)Consider a demand curve of the form Qd = 20-2p where Qd is the quantity demanded of a good and p is the price of the good. Also consider a supply curve of the form Qs = 2p-4 where Qs is the quantity supplied. Graph these curves. At what values of P and Q do these curves intersect?
2)Now suppose at each price individuals demand four more units of output, that is the demand curve shifts to Qdd = 24-2p. Graph this new curves. Graph this new curve on the diagram drawn in part 1) At what values of P and Q does the new demand curve intersect the supply curve identified in part 1)
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