In a competitive market, suppose that the demand function is QD(P) = 34 - (P=2) and the supply function is QS(P) = 5P -10. I already = them to get a P=$8
(a) What is excess supply or excess demand at a market price of P=6? I get QS= 20, and QD = 31 just having problems with the rest.
(b) If the market price is P=6, then how much is actually bought and sold in the market?
From this starting point, what in this market do you expect to change over time? In your answer, what are you assuming about what is endogenous and what is exogenous?
(c) Draw the supply and demand curves, showing the exact coordinates of at least two points on each curve.
(d) Calculate the equilibrium price and quantity.
(e) Calculate the inverse supply and demand curves.
(f) Use calculus to determine the slopes of the supply and demand curves.