Answered: Consider a market in which the demand…

Consider a market in which the demand curve is given Suppose there is a positive supply shock and the supply curve shifts to the right, so that quantity supplied increases by 100 at each price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider a market in which the demand curve is given by P= 1000-50, and the supply curve is given by P = 7.20.
Suppose there is a positive supply shock and the supply curve shifts to the right, so that quantity supplied increases by 100 at each
price.
What is the new equilibrium price?
Give your answer to 2 decimal places.

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