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Suppose the demand and supply curves of a Commodity - X is given by the following two equations simultaneously: Qd = 200-p Qs = 50+2p (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 qunatity as against the original equilibrium price and equilibrium qunatity. |
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Answer» Suppose the demand and supply curves of a Commodity - X is given by the following two equations simultaneously: |
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