Problem
Assume the following demand and supply functions
Qd= -10p + 80 Qs= 20p - 10
a) Draw these functions
b) Determine the equilibrium price and quantity and label the equilibrium, the price at equilibrium, and the quantity exchanged
c) Suppose that supply shifts to Qs= p -2 with no change in demand. Determine the new equilibrium price and quantity.
d) Calculate the surplus of the consumer and producer at the new equilibrium.