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(a) Suppose the initial inverse supply and demand equations for Fidget Spinners are as follows: P = Qs 275 - 10/11 P = 50.5 - Qd/50 Graph the supply and demand curves, and solve for the initial equilibrium quantity and price.
(b) Now suppose a global pandemic hits, forcing everyone to spend a bunch of time at home. The resulting boredom increases the demand for Fidget Spinners, so that at every price level 500 more Fidget Spinners are demanded. Graph the new demand curve, and solve for the new equilibrium quantity and price.
(c) Six months into the pandemic, many of the Fidget Spinner manufacturers are tired of working from home and so decide to shut down, resulting in the supply of Fidget Spinners shrinking by 50% at every price level. Graph the new supply curve, and solve for the new equilibrium quantity and price (assuming the demand curve remained as was described in part (b))
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