Question

Demand and s of office visits with cardiologists in Fairfax (market period: 1 week Assume no insurance Price 140 130 120 110 100 90 80 70 60 50 Demand 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 Supply 1375 1350 1325 1300 1275 1250 1225 1200 1175 1150

Help please.. its urgent.

Answer 1

Kindly refer the attached picture below I have calculated the value of new demand column by increasing the demand by 20% at every price and supply by increasing it at a rate of 5% at every price.

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Now plot the demand and supply curve using the excel refer the attached picture

The new equilibrium quantity is 1400

The equilibrium price is greater than 120 but less than 130.

It may be $ 125 (Approximately).

New supply is S2

New demand curve is D2

Please contact if having any query thank you.