Question
I have a questions about the following. I have demand of Q d = 400 - 4P and supply of Q s = 2P -
I have a questions about the following.
I have demand of Qd = 400 - 4P and supply of Qs = 2P - 50. A change in the market causes the supply to increase (shift right) and shift the curve own by $15 for ever Quantity q.
I need some help trying to determine the new supply equation and how to solve for equilibrium P2 and Q2.
How would I show the original supply curve S1 and new supply curve S2. I think I can show the old demand curve D1. I need to label the new market equilibrium.
How would I show the PS and CS that has come from the new equilibrium? How would I compute the CS and PS?
Lastly, this is the one I have trouble with, how would I determine who benefited most from the technology that actually shifted the curves in the first place? Would it be the consumers, producers, or both? I think consumers benefit because supply has shift left and this price has gone down. I am bit confused here.
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