1. Given the demand and the supply functions below: Supply function: P= 0.2Q - 40 Demand function: P = - 0.2Q + 120 (b) Suppose the cost of production increases by $7 per unit. (i) Find the new supply curve, the new equilibrium price and quantity.
1. Given the demand and the supply functions below: Supply function: P= 0.2Q - 40 Demand function: P = - 0.2Q + 120 (b) Suppose the cost of production increases by $7 per unit. (i) Find the new supply curve, the new equilibrium price and quantity.
Chapter1: Making Economics Decisions
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![4. Given the demand and the supply functions below:
Supply function: P= 0.2Q - 40
Demand function: P = - 0.2Q + 120
(b) Suppose the cost of production increases by $7 per unit.
(1) Find the new supply curve, the new equilibrium price and quantity.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F556888e1-8e3f-4d2e-a1c0-57f587d10728%2Faa3d22e6-8953-441d-a49a-4ba933fcc68e%2Fy6z90d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. Given the demand and the supply functions below:
Supply function: P= 0.2Q - 40
Demand function: P = - 0.2Q + 120
(b) Suppose the cost of production increases by $7 per unit.
(1) Find the new supply curve, the new equilibrium price and quantity.
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