The demand and supply curves for T-shirts in Touristtown, U.S.A., are given by the following equations( 3 points)
Q=24,000- 500P, Q=6,000 + 1,000P
Where P is measured in dollars and Q is the number of T-shirts sold per year.
1) Find the equilibrium price and quantity algebraically.
2)If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve?
Q=21,000 - 500P, Q=27,000 - 500P
Find the equilibrium price and quantity after the shift of the demand curve.
If, instead, two new stores that sell T-shirts open up in town, which of the following might be the new supply curve?
Q=4,000 + 1,000P, Q=9,000 + 1,000P
Find the equilibrium price and quantity after the shift of the supply curve.