Essay
(a)Determine the equilibrium price and quantity if demand is represented by the equation,P = 40 - .2QD and supply by the equation P = 10 + .4QS.
(b)Suppose demand changes and is now represented by the equation P = 52 - .2QD.Has demand increased or decreased? What is the new equilibrium price and quantity?
(c)Suppose instead supply changes and is now represented by the equation P = 16 + .4QS.Has supply increased or decreased? What is the new equilibrium price and quantity?
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(a)The equilibrium price and quantity ar...View Answer
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