Continuing your analysis, with demand of Qd = 200 - 5P and supply of Qs = 3P - 24, suppose an improvement in technology causes the supply curve to increase, shifting the curve down by $8 for every given quantity Q.

• Determine the new supply equation.
• Solve for equilibrium price P₂ and quantity Q₂.
• Depict the original supply S₁, the new supply S₂, and the original demand D₁on the usual P, Q diagram. Label all intercepts (including two intercepts for the demand curve and one intercept for the supply curve). Clearly indicate and label the new market equilibrium.
• Graphically indicate the areas of Consumer Surplus (CS₂) and Producer Surplus (PS₂) that resulted from the new market equilibrium.