Suppose that the demand and supply functions for good X are Qd= 298-8P Qs= -32 + 4P
a. Find the equilibrium price and quantity?
b. What is the market outcome if price is $35? What do you expect to happen? Why?
c. What is the market outcome if price is $29? What do you expect to happen? Why?
d. What happens to equilibrium price and quantity if the demand function becomes while the supply remains the same? .
e. What happens to equilibrium price and quantity if the supply function becomes , for the original demand function?