Draw the new supply and demand curves on a diagram

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Reference no: EM131072960

In Question 1, suppose there is a simultaneous shift in supply and demand caused by an improvement in technology and a growth in incomes. The technological improvement is represented by a lower supply curve: P = 10 + 2Q. The higher incomes boost demand to P = 76-4Q.

(a) Draw the new supply and demand curves on a diagram and compare them with the pre-change curves.

(b) Equate the new supply and demand functions and solve for the new equilibrium price and quantity.

Reference no: EM131072960

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