Question

Suppose D = 100 – 3p S = 10 + 2P a) Plot both the demand...

Suppose

D = 100 – 3p

S = 10 + 2P

  1. a) Plot both the demand and supply curves
  2. b) Solve for the equilibrium price both graphically and using algebra
  3. c) Now suppose there is an increase in demand so that the new demand function is given by: D = 180 – 3p. Compute the new equilibrium price and quantity using the two methods.
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