Consider the Following Demand and Supply Curves $Q ^ { \mathrm { d } } = 100 - 2 \mathrm { P }$

question 41

Multiple Choice

Consider the following demand and supply curves: $Q ^ { \mathrm { d } } = 100 - 2 \mathrm { P }$ , and $Q ^ { s } = 1 / 2 P$ , calculate the equilibrium $P$ and $Q$ for this initial situation and assuming the demand curve changes to $Q ^ { d } = 100$ - P. Which of the following is correct?

• A) The initial equilibrium is \(P = 40 , Q = 20\) and the demand curve shifts left.
• B) The initial equilibrium is \(P = 40 , Q = 20\) and the new equilibrium is \(P = 36 , Q = 28\).
• C) The initial equilibrium is \(P = 40 , Q = 20\) and the new equilibrium is \(P = 662 / 3\) and \(Q = 331 / 3\).
• D) The initial equilibrium is \(P = 40 , Q = 20\) and the demand curve shifts right.

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The degree to which a particular sample reflects the characteristics of its larger population.

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