   # (More difficult) The demand and supply curves for T-shirts in Touristtown, U.S.A., are given by the following equations: Q = 24 , 000 − 500 P Q = 6 , 000 + 1 , 000 P where P is measured in dollars and Q is the number of T-shirts sold per year. Find the equilibrium price and quantity algebraically. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve? Q = 21 , 000 − 500 P Q = 27 , 000 − 500 P Find the equilibrium price and quantity after the shift of the demand curve. If, instead, two new stores that sell T-shirts open up in town, which of the following might be the new supply curve? Q = 4 , 000 − 1 , 000 P Q = 9 , 000 + 1 , 000 P Find the equilibrium price and quantity after the shift of the supply curve ### Microeconomics: Principles & Policy

14th Edition
William J. Baumol + 2 others
Publisher: Cengage Learning
ISBN: 9781337794992

#### Solutions

Chapter
Section ### Microeconomics: Principles & Policy

14th Edition
William J. Baumol + 2 others
Publisher: Cengage Learning
ISBN: 9781337794992
Chapter 4, Problem 9TY
Textbook Problem
52 views

## (More difficult) The demand and supply curves for T-shirts in Touristtown, U.S.A., are given by the following equations: Q = 24 , 000 − 500 P Q = 6 , 000 + 1 , 000 P where P is measured in dollars and Q is the number of T-shirts sold per year. Find the equilibrium price and quantity algebraically. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve? Q = 21 , 000 − 500 P Q = 27 , 000 − 500 P Find the equilibrium price and quantity after the shift of the demand curve. If, instead, two new stores that sell T-shirts open up in town, which of the following might be the new supply curve? Q = 4 , 000 − 1 , 000 P Q = 9 , 000 + 1 , 000 P Find the equilibrium price and quantity after the shift of the supply curve

To determine

(a)

To find:

The market equilibrium and the respective price and quantity.

### Explanation of Solution

At market equilibrium, the market supply is equal to market demand. To find the equilibrium price and quantity, equate the market demand and supply curves as follows:

Q=24,000-500P ...... (Demand curve Equation)Q=6,000+1000P.......(Supply curve Equation)Market Demand = Market Supply

To determine

(b)

To Find:

The new equilibrium price and quantity after the shift of the demand curve.

To determine

(c)

To Find:

The new equilibrium price and quantity after the shift of the supply curve.

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