Question: Assume the following demand and supply function: Demand: Q = 40 - 10P Supply: Q = 30 + 10P (a). What is the equilibrium price?

Assume the following demand and supply function:

Demand: Q = 40 - 10P

Supply: Q = 30 + 10P

(a). What is the equilibrium price?

(b). What is the equilibrium quantity?

(c). If a firm decides to to charge a price equal to .2 (point 2), what will be new demand and supply?

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