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Let Qs = -1,000 + 5.5P and Qd = 25,000 - 2.5P be the supply and demand relationships respectively for a competitive market.
1.Derive the value of the slope for the demand curve.
2.Solve for the equilibrium price and quantity. Assume the price is expressed in dollars and the quantity is defined in 1,000's of units.
3. Calculate the exact quantity demanded and the exact quantity supplied at a price of $2,000. If there is a surplus or shortage, specify which and calculate its exact value. (Note: quantity is defined in 1,000's of units.)show all of your calculations in the space provided.
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