Question 1 Suppose that the demand for toy drums is described by the equation QD = 300 - 5p, and supply is QS = 60 + 3p, (1) What are the equilibrium price and quantity? (2) If a decrease in consumer income shifted the demand curve to QD’ = 220 - 5p, how does this change affect the equilibrium price and quantity? Show the solutions using a graph and calculate the numerical answer
Question 1 Suppose that the demand for toy drums is described by the equation QD = 300 - 5p, and supply is QS = 60 + 3p, (1) What are the equilibrium price and quantity? (2) If a decrease in consumer income shifted the demand curve to QD’ = 220 - 5p, how does this change affect the equilibrium price and quantity? Show the solutions using a graph and calculate the numerical answer
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 3PA: Consider the market for minivans. For each of the events listed here, identify which of the...
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Question 1
Suppose that the demand for toy drums is described by the equation QD = 300 - 5p, and supply is QS = 60 + 3p,
(1) What are the
(2) If a decrease in consumer income shifted the demand curve to QD’ = 220 - 5p, how does this change affect the equilibrium price and quantity?
Show the solutions using a graph and calculate the numerical answer.
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