a. consider a demand curve of the form Qd=-2p+20 where Qd is the quantity demand

Question

a. consider a demand curve of the form
Qd=-2p+20
where Qd is the quantity demanded of a good and P is the price of the good. graph this demand curve. Also draw a graph for the supply
Qs=2p-4
where Qs is the quantity supplied. Be sure to put P on the vertical axsis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c. At what vaules of P and Q do these curve intersect that is, where does Qd=As
b. Now suppose at each price that individuals demand four more units of output--that the demand curve shift to Qd=-2p+24
Graph this new demand curve. At what values of P and Q does the new demand curve intersect the old supply curve--that is, where does Qd=Qs
c. Now finally, suppose

Explanation / Answer

-2P+20=2P-4

= 2p+2P = 4+20

= 4P = 24

= P=24/4 ==6

P=6

now plug in 6 for P in QD

-2*P+20

=-2(6) + 20

= -12+20

Q= 8

QD=QS at P=6, Q=8

//////////////////////////

B)same thing but change 20 to 24 in QD

-2P+24=2P-4

.....28=4P

=28/4

=7

P=7

now plug in 7 for P in QD

-2*P+20

=-2(7) + 24

= -14+24

Q=10

QD=QS at P=7, Q=10

////////////////////////////////////

C)same idea, this time change 2P-4 --> 2P-8

-2P+24=2P-8

= 2p+2P = 8+24

= 4P = 32

= P=32/4 ==8

P=8

now plug in 8 for P in QD

-2*P+24

=-2(8) + 24

= -16+24

Q=8

QD=QS at P=8, Q=8

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.