Suppose an inverse demand function is given by p $=10-$ qd and an inverse supply function is given by p $=4+2$qs$.$

$($a$)$ What is the equilibrium price and quantity combination? $[5]$

$($b$)$ What happens when the price is above or below the equilibrium price? $[5]$

 

Answer rating: 100% (QA)

Answer When the price is above the equilibrium price quantity supplied excee... View the full answer