If demand for clothing is described by the equation QD = 200 - 10p, and supply is QS = 80 + 5p.

a. Find the equilibrium price and quantity?

b. What is the price elasticity of demand at the equilibrium price?

c. How would your answer change if a decrease in consumer income because of Covid-19 shifted the

demand curve to QD = 140 - 10p? That is, find the new equilibrium price and quantity. Does the price

elasticity of demand change at the new equilibrium price?

d. Show your initial and new equilibrium on a graph and provide a brief explanation.