1. A demand curve and supply curve are given respectively as follows: QD = 97 ? 4P QS = 1 + 2P
Draw both the demand and supply curves, and clearly label the equilibrium as well as numerical values for the equilibrium price and quantity.
2. A demand curve and supply curve for lawnmowers are given respectively as follows: QD = 72 ? 2P + 2MQS = 2P
Where M represents consumer income. Suppose that last year, consumer income was M = $150.
Find the equilibrium price and quantity of lawnmowers at that income level. In addition, suppose that this year, consumer income is M = $200. Find the equilibrium price and quantity of lawnmowers at this new income level. Draw the graph of both the demand and supply curves before and after the change in income. Clearly label any shifts or movements, as well as all curves and equilibrium points as well as numerical values for the equilibrium prices and quantities.