The demand and supply curves for T-shirts in Tourist town, U.S.A., are given by the following equations:

To solve the Equations remember at Equilibrium Quantity Demanded Equals Quantity Supplied

a.Q = 24,000 - 500P Q = 6,000 + 1,000P

where P is measured in dollars and Q is the number of T-shirts sold per year.

a. Find the equilibrium price and quantity algebraically.

b.b. If tourists decide they do not really like T-shirts that much, which of the following might be the new de-mand curve?

Q = 21,000 - 500P Q = 27,000 - 500P

Find the equilibrium price and quantity after the shift of the demand curve. If, instead, two new stores that sell T-shirts open up in town, which of the following might be the new supply curve?

Q = 4,000 + 1,000P Q = 9,000 + 1,000P

c.Find the equilibrium price and quantity after the shift of the supply curve.