Question 1) If the market demand and supply functions for pizza in Newtown were
QD = 12,000 - 1,000P
QS = -4,000 + 1,000P
Find the equilibrium quantity and price.
Question 2) Starting with the demand and supplies functions from problem #1, Determine algebraically the new equilibrium price and quantity if
(a) the demand function changes from QD=12,000-1,000P to QD"= 8,000- 1,000, or
(b) the market supply function changes from QS= -4,000 + 1,000P to QS** = 1,000P.