The demand and supply functions for sweatshirts the basic grey kind) are as follows:
The equations for the demand and supply functions above are as follows:

Qd = 20,000 - 500P
Qs = -8,000 + 3000P

a. Solve for the equilibrium price and quantity. Hint: at equilibrium, quantity supplied equals quantity demanded.)

b. Assume the supply function changes to:

Qs = -5,000 + 3000P

Does supply increase or decrease? What is the new equilibrium price and quantity?

Question

The demand and supply functions for sweatshirts the basic grey kind) are as follows:
  The equations for the demand and supply functions above are as follows:

Qd = 20,000 - 500P 
Qs = -8,000 + 3000P

a. Solve for the equilibrium price and quantity. Hint: at equilibrium, quantity supplied equals quantity demanded.)

b. Assume the supply function changes to:

Qs = -5,000 + 3000P

Does supply increase or decrease? What is the new equilibrium price and quantity?

Quizplus · Accepted Answer

The Answer of The demand and supply functions for sweatshirts the basic grey kind) are as follows:
  The equations for the demand and supply functions above are as follows:

Qd = 20,000 - 500P 
Qs = -8,000 + 3000P

a. Solve for the equilibrium price and quantity. Hint: at equilibrium, quantity supplied equals quantity demanded.)

b. Assume the supply function changes to:

Qs = -5,000 + 3000P

Does supply increase or decrease? What is the new equilibrium price and quantity?

The Demand and Supply Functions for Sweatshirts the Basic Grey