Question
Please draw the graphs and give detailed answers. Suppose the demand and supply curves for a product are given by: QD= 500-2P; QS= -100+3P a.
Please draw the graphs and give detailed answers.
Suppose the demand and supply curves for a product are given by: QD= 500-2P; QS= -100+3P
a. Graph the supply and demand curves
b. Find the equilibrium price and quantity
c. If the current price of the product is $100, what is the quantity supplied and quantity demanded? How would you describe this situation, and what would you expect to happen in this market?
d. If the current price of the product is $150 what is the quantity supplied and quantity demanded? How would you describe this situation, and what would you expect to happen in this market?
e. Suppose the demand changes to QD=600-2P. Find the new equilibrium price and quantity, and show this on your graph.
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
