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Assume that the supply and demand curves in a market are described by the following equations.
SUPPLY : P=5+(1.25)Qs
DEMAND :35-(1.75)Qd
Answer the following questions.
a. Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the price (P) on the vertical axis. You may use quantities four ( Q=2) through twenty (Q=18)by units of one (1) for your graph.
b. What is the quantity supplied (Qs) at P=$25?
c. What is the surplus or shortage when P=$26.25?
d. What is the price and quantity equilibrium (Pe and Qe) in this market?
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