Assume that demand for a commodity is represented by the equation P = 20 – 0.6...

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Assume that demand for a commodity is represented by the equation P = 20 – 0.6...

Assume that demand for a commodity is represented by the equation P = 20 – 0.6 Q _d, and supply by the equation P = 10 + 0.2 Qs where Q_d and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium condition Qs = Qd

1: Solve the equations to determine equilibrium price.

2: Now determine equilibrium quantity.

3: Graph the two equations to substantiate your answers and label these two graphs as D1 and S1.

4: Furthermore; using demand and supply show what happen to equilibrium price and quantity if eating this product causes cardiac problem.

don't forget to graph!

business economics

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