Find the equilibrium price and quantity

Reference no: EM1369839

The demand and supply curves for T- shirts in Touristtown, U.S.A., are given by the following equations:

Q= 24,000-500P Q= 6,000 + 1,000 P

Where P is measured in dollars and Q is the number of T shirts sold per year

a. Find the equilibrium price and quantity algebraically.
b. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve?
Q=21,000-500P Q=27,00 -500P
Find the equilibrium price and quantity after the shift of the demand curve.
c. If instead, two new stores that sell T- shirts open up in town, which of the following might be the new supply curve?
Q= 4,000+ 1,000 Q= 9,000 + 1,000P
Find the equilibrium price and quantity after the shift in the supply curve.

Reference no: EM1369839

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