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The following equations describe the supply and demand for computer support services catering to small businesses. Q is the number of businesses to be serviced and P is the monthly fee. QD= 3,000 - 10P QS = -1,000 + 10P (a.) At what monthly fee would quantity demanded equal zero? (b.) At what monthly fee would quantity supplied equal zero? (c.) Plot the supply and demand curves. (d.) What is the equilibrium price and output level? (e.) Suppose the demand increases and leads to a new demand curve: QD = 3,500 - 10P What is the new equilibrium price and output level? (f.) Now (using the new demand curve) suppose that new producers enter the market and the supply increases to: Qs = -500 + 10P. What is the new equilibrium price and output level? (g.) Show these changes on the graph
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