Suppose the supply and demand for a product are given by the numbers below for price, P, quantity demanded, Qd, and quantity sup das. 1 Qd Qs 300 200 0 250 300 100 P P 800

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Question
Q2
26.
plied.Qs.
a.
b.
Suppose the supply and demand for a product are given by the numbers
below for price, P, quantity demanded, Qd, and quantity sup
Qd
300
200 0
250 300 100
200 400 200
150 500
300
100 600 400
50
700 500
0
800 600
d.
What is the
P Qs
What are the equilibrium price and quantity?
Qe=
Now suppose demand increases so that the quantity demanded at each
price is 300 greater than originally. What is the new equilibrium
price and
quantity?
e.
equilibri
Pe=
Pe=
P
800
Qe=
C. Now suppose demand is at its original level and supply decreases so that
the quantity supplied at each price is 150 lower than originally.
new equilibrium price and quantity?
Pe=
Qe=
200
D
Pe=
400 Q
Now suppose that from the original equilibrium demand increases by 300
and supply decreases by 150 at the same time. What is the new
um price and quantity?
Qe =
Illustrate graphically your answers to a and c.
Transcribed Image Text:26. plied.Qs. a. b. Suppose the supply and demand for a product are given by the numbers below for price, P, quantity demanded, Qd, and quantity sup Qd 300 200 0 250 300 100 200 400 200 150 500 300 100 600 400 50 700 500 0 800 600 d. What is the P Qs What are the equilibrium price and quantity? Qe= Now suppose demand increases so that the quantity demanded at each price is 300 greater than originally. What is the new equilibrium price and quantity? e. equilibri Pe= Pe= P 800 Qe= C. Now suppose demand is at its original level and supply decreases so that the quantity supplied at each price is 150 lower than originally. new equilibrium price and quantity? Pe= Qe= 200 D Pe= 400 Q Now suppose that from the original equilibrium demand increases by 300 and supply decreases by 150 at the same time. What is the new um price and quantity? Qe = Illustrate graphically your answers to a and c.
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