Suppose the value of demand and supply curves of a Commodity-X is give

1.	Suppose the value of demand and supply curves of a Commodity-X is given by the following two equations simultaneously: Qd = 200 –10p Qs = 50 + 15p i) Find the equilibrium price and equilibrium quantity of commodity X. ii) Suppose that the price of a factor inputs used in producing the commodity has changed, resulting in the new supply curve given by the equation Qs’ = 100 + 15p Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.
Answer» Suppose the value of demand and supply curves of a Commodity-X is given by the following two equations simultaneously: Qd = 200 –10p Qs = 50 + 15p i) Find the equilibrium price and equilibrium quantity of commodity X. ii) Suppose that the price of a factor inputs used in producing the commodity has changed, resulting in the new supply curve given by the equation Qs’ = 100 + 15p Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.

Suppose the value of demand and supply curves of a Commodity-X is given by the following two equations simultaneously: Qd = 200 –10p Qs = 50 + 15p i) Find the equilibrium price and equilibrium quantity of commodity X. ii) Suppose that the price of a factor inputs used in producing the commodity has changed, resulting in the new supply curve given by the equation Qs’ = 100 + 15p Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.

Answer»

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

Qd = 200 –10p Qs = 50 + 15p

i) Find the equilibrium price and equilibrium quantity of commodity X.

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

Qs’ = 100 + 15p

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