The demand and supply functions are given below.
QD = 500 - 2P
QS = -100 + 3P
Graph the supply and demand curves using Excel.
Find the equilibrium price and quantity.
If the current price of the product is $100, what is the quantity supplied and quantity demanded? How would you describe this situation? What would you expect to happen in this market (will the price go up or down)?
If the current price of the product is $150, what is the quantity supplied and quantity demanded? How would you describe this situation? What would you expect to happen in this market (will the price go up or down)?
Suppose that the demand changes to QD = 600-2P and the supply function stays the same. Graph the new situation in Excel. Find the new equilibrium price and quantity, and show it on your graph.