8. Suppose a business has its supply (S) and demand (D) curves denoted by the following equations: D = 600 – 10P S = 10 P – 300 - Now a new competitor has entered the market and as a result the demand slows down by 200 customers. i. Express the new demand in an equation. What is the initial equilibrium price and quantity and what will happen to the equilibrium. Compute the new equilibrium position. Name and express how the factors that causes changes in supply and ii. ii. iv. demand curves.

8. Suppose a business has its supply (S) and demand (D) curves denoted by the following equations: D = 600 – 10P S = 10 P – 300 - Now a new competitor has entered the market and as a result the demand slows down by 200 customers. i. Express the new demand in an equation. What is the initial equilibrium price and quantity and what will happen to the equilibrium. Compute the new equilibrium position. Name and express how the factors that causes changes in supply and ii. ii. iv. demand curves.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 11PA

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