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