demand is Qd=400/4psupply is Qs=2p-50. technological innovation causes the supply curve to increase, shifting the curve down by $15 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 D1 on the usual P, Q diagram. Label all intercepts. Clearly indicate and label the new market equilibrium.

Graphically indicate the areas of Consumer Surplus (CS) and Producer Surplus (PS) that resulted from the new market equilibrium.

Compute the values of Consumer Surplus (CS) and Producer Surplus (PS) associated with the new market equilibrium.