Question: Suppose that the quantity supplied S and quantity demanded D of T-shirts at a concert are given by the following functions: S(p) = -200 +

Suppose that the quantity supplied S and quantity demanded D of T-shirts at a concert are given by the following functions:

S(p) = -200 + 50p

D(p) = 1000 - 25p

where p is the price of a T-shirt.

(a) Find the equilibrium price for T-shirts at this concert. What is the equilibrium quantity?

(b) Determine the prices for which quantity demanded is greater than quantity supplied.

(c) What do you think will eventually happen to the price of T-shirts if quantity demanded is greater than quantity supplied?

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