Midterm Assignment (due Friday October 4, 2024) There are two questions and 30 points in total Show all steps of your work. Only writing the final answer is not enough. Question 1 Consider a good that has existing demand curve given by Q = 60 - 6p and existing supply curve given by Q = 24 + 3p. Suppose there is a change in the supply curve and the new supply curve is given by Q = 12 + 2p. There is no change in the demand curve. (a) [4 points] Is the new supply curve a parallel shift from the existing supply curve? Briefly explain your answer. (b) [5 points] Does the new supply curve lie on the right or left of the existing supply curve? Briefly explain your answer. (c) [4 points] Showing all steps of your work, determine the existing equilibrium price and quantity before the change in the supply curve. (d) [4 points] Showing all steps of your work, determine the new equilibrium price and quantity after the change in the supply curve.
Midterm Assignment (due Friday October 4, 2024) There are two questions and 30 points in total Show all steps of your work. Only writing the final answer is not enough. Question 1 Consider a good that has existing demand curve given by Q = 60 - 6p and existing supply curve given by Q = 24 + 3p. Suppose there is a change in the supply curve and the new supply curve is given by Q = 12 + 2p. There is no change in the demand curve. (a) [4 points] Is the new supply curve a parallel shift from the existing supply curve? Briefly explain your answer. (b) [5 points] Does the new supply curve lie on the right or left of the existing supply curve? Briefly explain your answer. (c) [4 points] Showing all steps of your work, determine the existing equilibrium price and quantity before the change in the supply curve. (d) [4 points] Showing all steps of your work, determine the new equilibrium price and quantity after the change in the supply curve.
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 1.1P
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Question
![Midterm Assignment (due Friday October 4, 2024)
There are two questions and 30 points in total
Show all steps of your work. Only writing the final answer is not enough.
Question 1 Consider a good that has existing demand curve given by Q = 60 - 6p and existing
supply curve given by Q = 24 + 3p. Suppose there is a change in the supply curve and the new
supply curve is given by Q = 12 + 2p. There is no change in the demand curve.
(a) [4 points] Is the new supply curve a parallel shift from the existing supply curve? Briefly
explain your answer.
(b) [5 points] Does the new supply curve lie on the right or left of the existing supply curve?
Briefly explain your answer.
(c) [4 points] Showing all steps of your work, determine the existing equilibrium price and
quantity before the change in the supply curve.
(d) [4 points] Showing all steps of your work, determine the new equilibrium price and quantity
after the change in the supply curve.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdcf1222e-58b9-4255-a3a9-8f822a739892%2F06a660a1-bbbb-4c0d-8ec7-48558e9b3d08%2Ftklp2nh_processed.png&w=3840&q=75)
Transcribed Image Text:Midterm Assignment (due Friday October 4, 2024)
There are two questions and 30 points in total
Show all steps of your work. Only writing the final answer is not enough.
Question 1 Consider a good that has existing demand curve given by Q = 60 - 6p and existing
supply curve given by Q = 24 + 3p. Suppose there is a change in the supply curve and the new
supply curve is given by Q = 12 + 2p. There is no change in the demand curve.
(a) [4 points] Is the new supply curve a parallel shift from the existing supply curve? Briefly
explain your answer.
(b) [5 points] Does the new supply curve lie on the right or left of the existing supply curve?
Briefly explain your answer.
(c) [4 points] Showing all steps of your work, determine the existing equilibrium price and
quantity before the change in the supply curve.
(d) [4 points] Showing all steps of your work, determine the new equilibrium price and quantity
after the change in the supply curve.
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