The Demand and Supply Functions for Sweatshirts the Basic Grey

question 26

Essay

The demand and supply functions for sweatshirts the basic grey kind) are as follows:
The equations for the demand and supply functions above are as follows:
Qd = 20,000 - 500P Qs = -8,000 + 3000P
a. Solve for the equilibrium price and quantity. Hint: at equilibrium, quantity supplied equals quantity demanded.)
b. Assume the supply function changes to:
Qs = -5,000 + 3000P
Does supply increase or decrease? What is the new equilibrium price and quantity?

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