Suppose the demand for towel is given by QD=100-5p, and the supply of towel is given by QS=10p
a) Drive and graph the equilibrium price and quantity. Solve for equilibrium price and quantity
B) Suppose that supply changes so that at each price, 20 fewer towels are offered for sale. Derive and graph the new inverse supply curve
c) Solve for the new equilibrium and quantity. How does the decrease in supply affect the equilibrium price and quantity sold?