You are given the following information: Let Qs = -600 + 4.5P and Qd = 26,000 -
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Question:
You are given the following information:
Let Qs = -600 + 4.5P and Qd = 26,000 - 2.5P be the supply and demand relationships respectively for a competitive market.
- Calculate the exact quantity demanded and the exact quantity supplied at a price of $1,000. If there is a surplus or shortage, specify which and calculate its exact value. (Note: quantity is defined in 1,000's of units. Make sure to adjust your answer to account for this.)
- Derive the value of the slope for the demand curve.
- Solve for the equilibrium price and quantity. Assume the price is expressed in dollars and the quantity is defined in 1,000's of units. (Note: since quantity is defined in 1,000's of units, you need to adjust your answer to account for this.)
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