The supply equation changed to Qs = 30 + 2P. Use this information to mathematically solve for the new…

Question

The supply equation changed to Qs = 30 + 2P. Use this information to mathematically solve for the new equilibrium price and quantity.

ScanSolve AI Tutor · Accepted Answer

Okay, Janelle, let's tackle part (f) of Question 2.

f) The supply equation changed to $Q_s = 30 + 2P$ . Use this information to mathematically solve for the new equilibrium price and quantity.

The demand equation remains the same: $Q_d = 50 - 2P$ .
The new supply equation is: $Q_s = 30 + 2P$ .

To find the new equilibrium, set the demand quantity equal to the supply quantity.
$Q_d = Q_s$ $50 - 2P = 30 + 2P$
Solve for the new equilibrium price (P).
$50 - 30 = 2P + 2P$ $20 = 4P$ $P = \frac{20}{4}$ $P = 5$
The new equilibrium price is \boxed{5}$.
Substitute the new equilibrium price ( $P=5$ ) into either the demand or the new supply equation to find the new equilibrium quantity (Q).
Using the demand equation:
$Q_d = 50 - 2(5)$ $Q_d = 50 - 10$ $Q_d = 40$
Using the new supply equation:
$Q_s = 30 + 2(5)$ $Q_s = 30 + 10$ $Q_s = 40$
The new equilibrium quantity is $\boxed{40}$ .

The supply equation changed to Qs = 30 + 2P. Use this information to mathematically solve for the new equilibrium price and quantity.