Demand for contracting services

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After a hurricane hits, demand for contracting services goes up because of an increase in damaged houses. Similarly, supply may fall as some contractors have their equipment destroyed and costs go up as the mold remediation is necessary in most houses due to the flooding. Suppose demand for contracting services for a remodeled basement follows the equation: Q_d = 1200 - P/40 +100 H, where Q is quantity, P is price and H is the number of hurricanes that hits the community in a given year. Similarly, the supply for contracting services follows the equation Q_s = 300 + P/20 + 70H. For ever hurricane that hits this community, how much does quantity increase by in equilibrium? (ie, what is Delta Q for Delta H = 1?

Reference no: EM131245999

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