Draw demand and supply on a graph
Suppose the market for HDTV’S in the USA can be expressed by the following demand and supply equations:
Qd = 7500 – 2400PQs = 600P
Where Q is the number of HDTV’S and the price P is in thousands of dollars.
a) draw demand and supply on a graph
b) calculate the equilibrium price and quantity that will prevail in a free market.
c) calculate the price elasticity of demand and the price elasticity of supply at the equilibrium.
