Consider a market in which the demand curve is given Suppose there is a positive supply shock and the supply curve shifts to the right, so that quantity supplied increases by 100 at each price.
Consider a market in which the demand curve is given Suppose there is a positive supply shock and the supply curve shifts to the right, so that quantity supplied increases by 100 at each price.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 5SQP
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Transcribed Image Text:Consider a market in which the demand curve is given by P= 1000-50, and the supply curve is given by P = 7.20.
Suppose there is a positive supply shock and the supply curve shifts to the right, so that quantity supplied increases by 100 at each
price.
What is the new equilibrium price?
Give your answer to 2 decimal places.
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