Question

1.1 The demand and supply market are given as follows: Qd= 120 - 4P and Qs = -18+3P

1.1.1. Calculate the equilibrium price and quantity exchanged in this market and illustrate it on the graph? [03]
1.1.2 Suppose that the market demand increases by 100%, answer the following
a) What is the new market demand? [02]
b) what will be the effect of the change in market demand on the clearing price and quantity? Show all your calculations. [04]
c) Use a clearly labelled graph to show the effects of the changes in market demand. [04]

Answer 1

Answer:

Explanation:

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