Fundamental concepts in economics

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Market equilibrium is one of the fundamental concepts in economics.

  • Describe market equilibrium using relevant graphs and discuss market surplus and market shortage.
  • Suppose the market for kittens adoption centre can be described by the following equations:

Demand equation: Qd = 100 - 20P

Supply equation: Qs = 130 + 2P

Calculate the equilibrium price (P) and quantity (Q) of kittens. Remember that a negative price of kittens is not allowed. How many kittens will be adopted by humans and how many will be "strays?"

Reference no: EM132608460

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