ECO 550 - Question 1

ECO 550 - Question 1 - happen in this market d Now the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Suppose the demand and supply curves for a product are  given by;Qd = 500 - 5PQs = 100 + 5Pa) Graph the supply  and demand curves in Excel (use the market prices of $50,  $65, $90, $105, and $120). b) Find out (numerically) the market equilibrium price and  quantity and show this on your graph. c) If the current market price of the product is $50, what is  the quantity supplied and quantity demanded? How would  you describe this situation and what would you expect to 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: happen in this market? d) Now the demand shifts in (decrease) by 20% due decrease in consumer’s income and the supply shifts out (decrease in cost) by 30% due to new technology advance (capital investment), show graphically and calculate the effects on equilibrium price and quantity of shifts of supply and demand. Should the firm invest on this new technology?...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online