Assignment # 1
Assignment # 1
Where P is the price in rupee and Q is the number T-shirts sold per year.
c. If instead, two new stores that sell T-shirts open up in town, which of the
following might be the new supply curve?
Find the new equilibrium price and quantity after the shift in the supply
curve.
(3)
Solution
a.
Qd=Qs
Qd = 24,000 – 500(12)=18,000
Qs = 6,000 + 1,000(12)=18,000
Qd2=27000-500P
Qs=6000+1000P
27000-500P=6000+1000P
27000-500P-6000-1000P
P=21000/-1500= -14
Qd=27000-500(-14)= -20,000
Qs=6000+1000(-14)= -20,000
Qs1=3000+1000p
Qd=24,000 – 500P
24000-500p-3000-1000p
21000-1500p
P=21,000/1500
P=14
Qse=3000+1000(14)=17,000
Qde=24000-500(14)=17000