The market for snow shovel is described by the following supply and demand curve
The market for snow shovel is described by the following supply and demand curves:
d
s
P Q
P Q
150 4
30 2
= −
= +
a. Draw the curves. Be sure to label axes and curves.
b. Compute the equilibrium price and equilibrium quantity.
c. If the price is $90, what is the quantity supplied? What is the quantity demanded?
d. At a price of $90, is the market in equilibrium? If not, name the situation? What will happen? Why?
e. If the price is $58, what is the quantity supplied? What is the quantity demanded?
f. At a price of $58, is the market in equilibrium? If not, name the situation? What will happen? Why?