a. Suppose the market demand for shirts is given by Qd = 300 - 20P and the market supply for shirts is given by Qs = 20P - 100, where P = price (per shirt). Graph the supply and demand schedules for shirts between price = $5 through to $15 (increase in units of 1, i.e. 5, 6, 7...). Using the equations provided, in equilibrium, how many shirts would be sold and at what price? What would happen if suppliers set the price of shirts at $15? Explain the market adjustment process. ii. iii.

a. Suppose the market demand for shirts is given by Qd = 300 - 20P and the market supply for shirts is given by Qs = 20P - 100, where P = price (per shirt). Graph the supply and demand schedules for shirts between price = $5 through to $15 (increase in units of 1, i.e. 5, 6, 7...). Using the equations provided, in equilibrium, how many shirts would be sold and at what price? What would happen if suppliers set the price of shirts at $15? Explain the market adjustment process. ii. iii.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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