3. Use supply & demand curves to explain what might happen in the market for bicycles if the price of gasoline increases. 4. The demand curve for a particular good is given by the equation Q- 5000-20P. The supply curve is Q. =-500+30P. What are the equilibrium price and quantity for this product? Use a diagram to illustrate the solution. If the supply curve shifts to Q,- -200+30P, what will be the new solution? In the same diagram, illustrate the change in the equilibrium position.

3. Use supply & demand curves to explain what might happen in the market for bicycles if the price of gasoline increases. 4. The demand curve for a particular good is given by the equation Q- 5000-20P. The supply curve is Q. =-500+30P. What are the equilibrium price and quantity for this product? Use a diagram to illustrate the solution. If the supply curve shifts to Q,- -200+30P, what will be the new solution? In the same diagram, illustrate the change in the equilibrium position.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 1SCQ: Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher...

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