P Qd Qs
14 10 70
12 20 60
10 30 50
8 40 40
6 50 30
4 60 20
2 70 10
a. Draw the supply and demand curves on the same diagram. Determine the equilibrium price and quantity and demonstrate it in your graph.
b. On the same diagram, show the new equilibrium P & Q when demand has increased by 20% and supply has decreased by 20%. Discuss your answer. Develop and show the numerical values for new supply and demand tables.
c. Demonstrate the impacts of two government price controls set at P = $12 as well as at P = 4. Demonstrate by number and in the graph. Discuss your answer.
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