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Unformatted text preview: Situation Supply curve shifts? Demand curve shifts? Equilibrium quantity ? Price? a no left falls falls b c d e f Quantity Price D S Quantity Price D S Quantity Price D S Quantity Price D S Quantity Price D S Quantity Price D S 3. Suppose that the supply and demand equations are given by the equations below: Demand: Q d = 16 – 2P Supply: Q s = -8 + 2P A. Find the equilibrium price and quantity. B. Suppose that there is an increase in income. After the change the demand curve is given by Q d = 20 – 2P. Find the new equilibrium price and quantity. C. What does the change in demand tell us about the good?...
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This note was uploaded on 03/20/2012 for the course ECON 221 taught by Professor Gordanier during the Fall '08 term at South Carolina.
- Fall '08