2.5 This problem involves solving demand and supply equations together to determine price and quantity. a. Consider a demand curve of the form QD = -2P+20, where QD is the quantity demanded of a good and P is the price of the good. Graph this demand curve. Also draw a graph of the supply curve Qs =2P-4, where Qs is the quantity supplied. Be sure to put P on the vertical axis and Q on the horizontal axis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c. At what values of P and Q do these curves intersect-that is, where does QD=Qs ? b. Now, suppose at each price that individuals demand four more units of output-that the demand curve shifts to QD - 2P+24. Graph this new demand curve. At what values of P and Q does the new demand curve intersect the old supply curve that is, where does QD =Qs ? c. Now finally, suppose the supply curve shifts to Q's=2P-8. Graph this new supply curve. At what values of P and Q does Qp =Q's ? You may
2.5 This problem involves solving demand and supply equations together to determine price and quantity. a. Consider a demand curve of the form QD = -2P+20, where QD is the quantity demanded of a good and P is the price of the good. Graph this demand curve. Also draw a graph of the supply curve Qs =2P-4, where Qs is the quantity supplied. Be sure to put P on the vertical axis and Q on the horizontal axis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c. At what values of P and Q do these curves intersect-that is, where does QD=Qs ? b. Now, suppose at each price that individuals demand four more units of output-that the demand curve shifts to QD - 2P+24. Graph this new demand curve. At what values of P and Q does the new demand curve intersect the old supply curve that is, where does QD =Qs ? c. Now finally, suppose the supply curve shifts to Q's=2P-8. Graph this new supply curve. At what values of P and Q does Qp =Q's ? You may
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![2.5 This problem involves solving demand and supply equations together to determine
price and quantity.
a. Consider a demand curve of the form
QD=-2P+20,
where QD is the quantity demanded of a good and P is the price of the good. Graph
this demand curve. Also draw a graph of the supply curve
Qs =2P-4,
where Qs is the quantity supplied. Be sure to put P on the vertical axis and Q on the
horizontal axis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c.
At what values of P and Q do these curves intersect-that is, where does QD = Qs ?
b. Now, suppose at each price that individuals demand four more units of output-that
the demand curve shifts to
QD - 2P+24.
Graph this new demand curve. At what values of P and Q does the new demand curve
intersect the old supply curve-that is, where does QD = Qs ?
c. Now finally, suppose the supply curve shifts to
Q's=2P-8.
Graph this new supply curve. At what values of P and Q does QD
Q's? You may
wish to refer to this simple problem when we discuss shifting supply and demand
curves in later sections of this book.
=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fde87f139-11fd-4595-b906-d6288f3fd466%2Fc28ead6b-e866-4045-ab39-76c7f1c5894d%2Fqcarut_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2.5 This problem involves solving demand and supply equations together to determine
price and quantity.
a. Consider a demand curve of the form
QD=-2P+20,
where QD is the quantity demanded of a good and P is the price of the good. Graph
this demand curve. Also draw a graph of the supply curve
Qs =2P-4,
where Qs is the quantity supplied. Be sure to put P on the vertical axis and Q on the
horizontal axis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c.
At what values of P and Q do these curves intersect-that is, where does QD = Qs ?
b. Now, suppose at each price that individuals demand four more units of output-that
the demand curve shifts to
QD - 2P+24.
Graph this new demand curve. At what values of P and Q does the new demand curve
intersect the old supply curve-that is, where does QD = Qs ?
c. Now finally, suppose the supply curve shifts to
Q's=2P-8.
Graph this new supply curve. At what values of P and Q does QD
Q's? You may
wish to refer to this simple problem when we discuss shifting supply and demand
curves in later sections of this book.
=
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