Explore BrainMass
Share

Explore BrainMass

    The equilibrium price and quantity under different circumstances

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The demand function for a good is QD = 30 − P, and the supply function is Qs = 4P.
    (a) Find the equilibrium price and quantity for the good.
    (b) Due to a natural disaster, the supply of the good decreased by half. What are the new equilibrium price and quantity?
    (c) When there is no natural disaster, the demand for the good is increased to QD = 30 - 0.8P. What are the new equilibrium price and quantity?

    © BrainMass Inc. brainmass.com October 10, 2019, 8:33 am ad1c9bdddf
    https://brainmass.com/economics/equilibrium/equilibrium-price-quantity-different-circumstances-641878

    Attachments

    Solution Preview

    The demand function for a good is QD = 30 − P, and the supply function is Qs = 4P.
    (a) Find the equilibrium price and quantity for the good.
    (b) Due to a natural disaster, the supply of the good decreased by half. What are the new equilibrium price and quantity?
    (c) When there is no natural disaster, ...

    Solution Summary

    The solution explains the condition at the equilibrium and provides detailed steps of calculation.

    $2.19