The demand (Qd) and supply (Qs) equations for a good X are given by: - Qd = 3000 – 20p Qs = -1500 + 25p, where P = Price (i) Draw the demand and supply curves on a graph. (5 marks) (ii) Find the equilibrium quantity and price. (2 marks) (iii) At what price can there be a shortage of good (X)? What are the resulting consequences on the market?

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ii The demand equation of good X is given as Qd300020p where Qd and p represent the quantity demande... View the full answer