11 a. Consider a demand curve of the form. b. QD = -2P + 20 where Qp is quantity demanded of a good and P is the price of the good. Also consider a supply curve of the form Qs = 2P - 4 where Qs is the quantity supplied. Graph these curves. At what values of P and Q do these curves intersect? Now suppose at each price individuals demand four more units of output, i.e. the demand curve shifts to Qp = -2P +24, Graph this new curve. At what values of P and Q does the new demand curve interest the old supply curve?

11 a. Consider a demand curve of the form. b. QD = -2P + 20 where Qp is quantity demanded of a good and P is the price of the good. Also consider a supply curve of the form Qs = 2P - 4 where Qs is the quantity supplied. Graph these curves. At what values of P and Q do these curves intersect? Now suppose at each price individuals demand four more units of output, i.e. the demand curve shifts to Qp = -2P +24, Graph this new curve. At what values of P and Q does the new demand curve interest the old supply curve?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 6SQ

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