Maintain at least 2 decimal places in your answers)

Q_D = 15,000 – 500P

Q_S = -8,000 + 3,000P

2. Solve for the equilibrium price and quantity. (Hint: at equilibrium, quantity supplied equals quantity demanded.)

3. Now assume the supply function changes to:

Qs = -9,000 + 3000P

Is this an increase in supply or a decrease in supply? Calculate the new equilibrium price and quantity