Problem: Assume the following: Consider the following demand and supply functions for Headphones Qd = 24 - 4p Qs = -6 + 6p Where, Qd = quantity of headphones demanded Qs = quantity of headphones supplied; P = price of headphones Use the information above to answer the following questions:
a) Draw the demand and supply function for headphones using a rough scale and showing the appropriate intercepts for the price and quantity axis for the two functions (excluding the quantity axis intercept for the supply function)
b) Calculate the equilibrium price and quantity in this market. Show workings.