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Consider the following demand and supply functions for a good. Quantity demanded = 160 - 2p Quantity supplied = - 40 + 2p (i) Calculate the equilibrium price and quantity. (ii) Find out a price at which there is excess demand. (iii) Find out a price at which there is excess supply. |
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Answer» Consider the following demand and supply functions for a good. Quantity demanded = 160 - 2p Quantity supplied = - 40 + 2p (i) Calculate the equilibrium price and quantity. (ii) Find out a price at which there is excess demand. (iii) Find out a price at which there is excess supply. |
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