million more supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain the situation: the reasons of increase of supply and what new equilibrium mean

ENGR.ECONOMIC ANALYSIS
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Q1.Table shows the amount of savings and borrowing in a market, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market? Now, imagine the supply curve shifts so that there will be $5 million more supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain the situation: the reasons of increase of supply and what new equilibrium mean

Interest rate

Qs

Qd

5

200

470

6

270

320

7

300

300

8

350

250

9

400

200

10

500

100

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