(Answered) Suppose the demand and supplycurves for a product are given

Economics

Suppose the demand and supplycurves for a product are given by QD = 500 -2P

QS =-100 + 3P

a. Graph the supply and demand curves.

b. Find the equilibrium price and quantity.

Qd= Q3

500-2P= -100+3P

P= Pe = 120 & Qe=260

The equilibrium price is $120 and the quantity is 260

c. If the current price of the product is $100, what is thequantity supplied and the quantity demanded? How would you describe thissituation, and what would you expect to happen in this market?

d. If the current price of the product is $150, what is thequantity supplied and the quantity demanded? How would you describe thissituation, and what would you expect to happen in this market?

e. Suppose that demand changes to QD = 600 - 2P.Find the new equilibrium price and quantity, and show this on your graph.

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Microeconomics, Economics

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