a. Suppose the market demand for shirts is given by Qd = 300 - 20P and the market supply for shirts is given by Qs = 20P - 100, where P = price (per shirt). Graph the supply and demand schedules for shirts between price = $5 through to $15 (increase in units of 1, i.e. 5, 6, 7...). Using the equations provided, in equilibrium, how many shirts would be sold and at what price? What would happen if suppliers set the price of shirts at $15? Explain the market adjustment process. ii. iii.

a. Suppose the market demand for shirts is given by Qd = 300 - 20P and the market supply for shirts is given by Qs = 20P - 100, where P = price (per shirt). Graph the supply and demand schedules for shirts between price = $5 through to $15 (increase in units of 1, i.e. 5, 6, 7...). Using the equations provided, in equilibrium, how many shirts would be sold and at what price? What would happen if suppliers set the price of shirts at $15? Explain the market adjustment process. ii. iii.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 8WNG

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Suppose the market demand for shirts is given by Qd = 300 – 20P and the market supply for shirts is given by Qs = 20P – 100, where P = price (per shirt). i. Graph the supply and demand schedules for shirts between price = $5 through to $15 (increase in units of 1, i.e. 5, 6, 7…). ii. Using the equations provided, in equilibrium, how many shirts would be sold and at what price? iii. What would happen if suppliers set the price of shirts at $15? Explain the market adjustment process.
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