Question 4

Ifd= 40 2ands= 10 + 3, what are the equilibrium values of price and quantity? Please provide a graph with price on the vertical axis and quantity on the horizontal axis showing the equilibrium price and equilibrium quantity.

Question 5

1. a)Ifd=1005ands=10+, what are the equilibrium prices and quantity?
2. b)If demand increases by 12 and price remains the same as in (a), will there be a shortage or surplus? And
3. by how much?
4. c)If demand increases by 12, what will be the new equilibrium price and quantity?