Assume that a market is described by the following functions:
Demand Function: Qd = 100 â 2P
Supply Function: Qs = 3P
a) Solve for the equilibrium price and quantity.
b) If the Supply function changes to
Supply Function = 10 + 3P while the demand function remains unchanged.
Solve of for the new equilibrium price and quantity. Offer an explanation as to why this change may have occurred. Limit your response to a maximum of 50 words.
Assume that a market is described by the following functions:
Demand Function: Qd = 100 â 2P
Supply Function: Qs = 3P
a) Solve for the equilibrium price and quantity.
b) If the Supply function changes to
Supply Function = 10 + 3P while the demand function remains unchanged.
Solve of for the new equilibrium price and quantity. Offer an explanation as to why this change may have occurred. Limit your response to a maximum of 50 words.
Related textbook solutions
Related questions
Consider the following demand function and the supply schedule for bread:
Demand function: Qd = -2P+20 and;
Supply schedule:
| P | Qs |
| 4 | 4 |
| 8 | 12 |
a. determine the supply function and solve the equations for the equilibrium values (show your work).
b. Show what happens if the authorities impose a price restriction at $8.00. What may be the justification for it?
c. Show graphically and explain what happens to the price and quantity at equilibrium if the price of bagels rises and while the cost of energy to bake the bread increases.
