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Consider a market for hammers with a demand curve QD = 1000 200P and a supply curve QS = 800P. (a) What is the equilibrium
Consider a market for hammers with a demand curve QD = 1000 200P and a supply curve QS = 800P. (a) What is the equilibrium price and quantity in this market? (b) What will the consumer surplus be in this market? (c) What will the producer surplus be in this market? This year, there is a shortage of scrap metal, an input into making hammers. At every price, the market will supply 1,000 less hammers. (d) What is the equation for the new supply curve for hammers? (e) What will the new equilibrium price and quantity be? (f) Draw a labeled diagram of this supply curve shift
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