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November 21, 2022

Find the equilibrium price, quantity, and revenue in a market characterized by the following information:

Find the equilibrium price, quantity, and revenue in a market characterized by the following information:

Qd = 5000 – 20P

[demand curve]

Qs = 30P

[supply curve]

Question 2.

[10 points] Predict the direction of change (rise or fall) in

the equilibrium price and quantity in the market for gasoline this week if drivers come to expect that the price of gasoline will fall next week. Use a demand-supply graph to justify your prediction.

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