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). i. Graph the supply and demand schedules for shirts between price = $5 through to $15 (increase in units of 1, i.e. 5, 6, 7…). ii. Using the equations provided, in equilibrium, how many shirts would be sold and at what price? iii. What would happen if suppliers set the price of shirts at $15? Explain the market adjustment process.
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). i. Graph the supply and demand schedules for shirts between price = $5 through to $15 (increase in units of 1, i.e. 5, 6, 7…). ii. Using the equations provided, in equilibrium, how many shirts would be sold and at what price? iii. What would happen if suppliers set the price of shirts at $15? Explain the market adjustment process.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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).
i. Graph the
through to $15 (increase in units of 1, i.e. 5, 6, 7…).
ii. Using the equations provided, in equilibrium, how many shirts would
be sold and at what price?
iii. What would happen if suppliers set the price of shirts at $15? Explain
the market adjustment process.
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