Assume the following demand and supply functions: Qd= 28-3P and Qs= -12+2P

1, Plot the demand and supply curves on the graph and confirm your answer.

2, Suppose the supply shift to Qs= -2 +2p, with no change in demand. Determine the new equilibrium price and quantity. Use the graph and also solve algebraically.

3, Suppose that the price had been held constant at its original level in (b). Would a surplus or a shortage emerge, and how large would it be?

4, Although the supply curve shifts to the right by 10, the quantity exchanged does not rise by 10, Explain why the increase in quantity exchanged is smaller