Question: 2. (25 pts) Consider the following one-commodity market model, A P -180* + 265 P = Q2 + 10Q s + 25 where Qa, Q,

2. (25 pts) Consider the following one-commodity market model, A P -180* + 265 P = Q2 + 10Q s + 25 where Qa, Q, and P denote quantity demanded, quantity supplied and price, respectively. (a) Calculate the equilibrium price and quantity. (8 pts) (b) Graph the two functions indicating the x- and y-intercepts and the intersection points (put P on the y-axis). Show the equilibrium. (12 pts). (c) Assume that there is a technological advantage that influences the supply curve. Use the previous graph to present the effect on the supply curve. How does this event affect the equilibrium price and quantity? (5 pts)

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