Suppose Supply and Demand Are Represented by the Following Equations

question 2

Essay

Suppose supply and demand are represented by the following equations:
Q_D = 25 - 0.4P
Q_S = 7 + 0.2P
If supply changes so that
Q_S = 13 + 0.2P
calculate the change in equilibrium price that results.

---

Definitions:

Mutual Fund

An investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Professional Manager

A person responsible for controlling or administering all or part of a company or similar organization.

Investment Goals

Objectives or targets set by an individual or institution for their investment activities, often to guide decision-making.

New York Stock Exchange

One of the largest stock exchanges in the world located at Wall Street, New York, where securities are bought and sold.