Economics 12th Edition by William Baumol, Alan S Blinder

تمرين 8

(More difficult) The demand and supply curves for T-shirts in Touristtown, U.S.A., are given by the following equations:

where P is measured in dollars and Q is the number of T-shirts sold per year.
a. Find the equilibrium price and quantity algebraically.
b. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve

Find the equilibrium price and quantity after the shift of the demand curve.
c. If, instead, two new stores that sell T-shirts open up in town, which of the following might be the new supply curve

Find the equilibrium price and quantity after the shift of the supply curve.