Solve for the equilibrium price and quantity

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Reference no: EM13244571

Suppose the demand for Vancouver Canucks jerseys is givenby:

Qd =1000-4P (2)

and the supply of these jerseys by:

Qs =100+6P (3)

(a) Re-write each of these equations as inverse demand/supplycurves (that is P = . . .).

(b) Draw these inverse demand/supply curves.

(d) Now suppose that due to the success of the Canucks in the firstround of playoffs the demand for jerseys rises, what do you thinkwill happen to the equilibrium price and quantity of Canucksjerseys?

(e) The increase in demand causes the demand curve to become:

Qd =1600-4P (4)

Is this a change in the slope orintercept (or both) of the demand curve?

(f) Using this new demand curve solve for the new equilibrium priceand quantity.

Reference no: EM13244571

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