Suppose ManTown demand and supply curves for oil is given by ? = 500−4? ? = −100+6? a) Determine which one is the supply b) Calculate the equilibrium price and quantity c) Suppose that ManTown demand changes to ? = 600−4?. Find the new equilibrium price and quantity. e) Compare what happens to equilibrium quantities and prices in questions (b) and (c)?
Suppose ManTown demand and supply curves for oil is given by ? = 500−4? ? = −100+6? a) Determine which one is the supply b) Calculate the equilibrium price and quantity c) Suppose that ManTown demand changes to ? = 600−4?. Find the new equilibrium price and quantity. e) Compare what happens to equilibrium quantities and prices in questions (b) and (c)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Suppose ManTown demand and supply
? = 500−4?
? = −100+6?
- a) Determine which one is the supply
- b) Calculate the
equilibrium price and quantity - c) Suppose that ManTown demand changes to
? = 600−4?.
Find the new equilibrium price and quantity. - e) Compare what happens to
equilibrium quantities and prices in questions (b) and (c)? - 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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VIEWStep 2:Determine which one is the supply
VIEWStep 3:Calculate the equilibrium price and quantity
VIEWStep 4: Suppose that Man Town demand changes to Q= 600−4P. Find the new equilibrium P and Q.
VIEWStep 5:Compare what happens to equilibrium quantities and prices in questions (b) and (c)?
VIEWStep 6: if the current price is 110, describe what happens to quantities and prices of DD and SS.
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