Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 25P
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Question
Given the following two equations:
Qd = 150 – 3P
Qs = 70 + 2P
- Calculate the
equilibrium price and theequilibrium quantity . Show all your work. - Using the above two equations to find the values of Qd, Qs, the market situation (Shortage/Surplus/Equilibrium), and the Value of shortage or surplus if any, at the following prices.
10, 15,20 and 25.
- If the consumer income increases by 20%, what will happen to the equilibrium price and quantity.
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