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Economics 12th Edition by William Baumol, Alan S Blinder
Edition 12ISBN: 978-0538453691Economics 12th Edition by William Baumol, Alan S Blinder
Edition 12ISBN: 978-0538453691 Exercise 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.
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.
Explanation
Verified
Verified
(a)
The following demand and supply func...
Economics 12th Edition by William Baumol, Alan S Blinder
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