Suppose the demand and supply curves of a Commodity-X is given by the

1.	Suppose the demand and supply curves of a Commodity-X is given by the following two equations simultaneously: Qd = 200 - p Qs = 50 + 1p i Find the equilibrium price and equilibrium quantity. ii) Suppose that the price of a factor of production producing the commodity has changed, resulting in the new supply curve given by the equation Qs’ = 80 +2p Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.
Answer» Suppose the demand and supply curves of a Commodity-X is given by the following two equations simultaneously: Qd = 200 - p Qs = 50 + 1p i Find the equilibrium price and equilibrium quantity. ii) Suppose that the price of a factor of production producing the commodity has changed, resulting in the new supply curve given by the equation Qs’ = 80 +2p Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.

Suppose the demand and supply curves of a Commodity-X is given by the following two equations simultaneously: Qd = 200 - p Qs = 50 + 1p i Find the equilibrium price and equilibrium quantity. ii) Suppose that the price of a factor of production producing the commodity has changed, resulting in the new supply curve given by the equation Qs’ = 80 +2p Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.

Answer»

Suppose the demand and supply curves of a Commodity-X is given by the following two equations simultaneously:

Qd = 200 - p

Qs = 50 + 1p i

Find the equilibrium price and equilibrium quantity.

ii) Suppose that the price of a factor of production producing the commodity has changed, resulting in the new supply curve given by the equation

Qs’ = 80 +2p

Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.