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Assume that a market is described by the following functions:
Demand Function:
Qd = 100 - 2P
Supply Function: Qs = 3P
a) Solve for the equilibrium price and quantity. Graph these functions (hint use the drawing tool in Word and notice they are linear functions), showing the equilibrium conditions
b) If the Supply function changes to Supply Function = 10 + 3P while the demand function remains unchanged.
Solve of for the new equilibrium price and quantity. Offer an explanation as to why this change may have occurred. Limit your response to a maximum of 50 words.
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