Problem
Write demand and supply equations that represent demand, D0 , and supply, S0 , in Figure A5-1 in this appendix.
a. Solve for equilibrium price and quantity mathematically. Show your work.
b. Rewrite the demand equation to reflect an increase in demand of 3 units. What happens to equilibrium price and quantity?
c. Rewrite the supply equation to reflect a decrease in supply of 3 units at every price level. What happens to equilibrium price and quantity using the demand curve from b?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.