Find the equilibrium market quantity and price

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Reference no: EM131004838

Please show work, steps taken, and explain how the answer was found.

Let’s say there are 50 firms in a perfectly competitive market, each with firm supply curves of q=0.6P -15. Market demand is given by Q= 1250 - 20P.

a) Find the equilibrium market quantity and price.

b) Suppose one of the factors that affects demand changes such that market demand is now Q = 1500 - 20P. Tell me a factor that could have changed to create this shift (NOT tastes), how the factor changed (increased or decreased), and then find the new equilibrium price and quantity.

Reference no: EM131004838

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