Suppose ManTown demand and supply curves for oil is given by ? = 500−4? ? = −100+6? a) Determine which one is the supply curve and which one is the demand curve and why? b) Calculate the equilibrium price and quantity c) Suppose that ManTown demand changes to ? = 600−4?. Find the new equilibrium price and quantity.
Suppose ManTown demand and supply curves for oil is given by ? = 500−4? ? = −100+6? a) Determine which one is the supply curve and which one is the demand curve and why? b) Calculate the equilibrium price and quantity c) Suppose that ManTown demand changes to ? = 600−4?. Find the new equilibrium price and quantity.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Suppose ManTown demand and supply curves for oil is given by
? = 500−4?
? = −100+6?
a) Determine which one is the supply curve and which one is the demand curve and why?
b) Calculate the
c) Suppose that ManTown demand changes to ? = 600−4?. Find the new equilibrium price and quantity.
e) Compare what happens to
f) From equation (1), if the current price is 110, describe what happens to quantities and prices of demand and supply in this market?
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