(Advanced analysis) The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q. If demand changes from P = 10 - .2Q to P = 7 - .3Q, the new equilibrium price is

Question

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To find the new equilibrium price, set the new demand equation 7 - 0.3Q equal to the supply equation 2 + 0.2Q. Solving 7 - 0.3Q = 2 + 0.2Q gives Q = 10. Substitute Q = 10 into either equation to find P = 4.

(Advanced Analysis) the Demand for Commodity X Is Represented by the Equation