# Virginia Tech FIN FIN MISC Suppose quantity demanded is given by Qd=100-P, and quantity…

Virginia Tech FIN FIN MISC Suppose quantity demanded is given by Qd=100-P, and quantity…

Suppose quantity demanded is given by

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Qd=100-P, and quantity supplied is given by Qs=20+3P. In this case, find equilibrium price, P*, and equilibrium quantity, Q*. Draw the market supply and demand curves. If due to an external factor (give an example), the new supply equation turns out to be Qs=40+3P, what happens to equilibrium price and quantity?

Explain your work and draw graphs.

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