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Question: in detail show and explain all steps...

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2. Suppose that the market for a product is perfectly competitive. The inverse demand curve is described by the equation P = 100-2QD, where P is the products price (in dollars per kilogram) and Q is the quantity demanded in llions of kilograms per year). The actual price of the product is S70 per kilogram. Suppose the inverse supply curve for the product is described by the equation P 50 + 3Qs (a) Provide equations for the corresponding demand and supply curves (with quantity as a function of price) (b) On a graph, draw the demand and supply curves. Label everything properly Identify on the graph the quantity consumers wish to purchase and the quantity producers wish to sell when the market price is $70 per kilogram. (c) If the market price is $70 per kilogram, is the quantity demanded greater than, less than, or equal to the quantity producers wish to supply? Do you predict the market price will stay the same or change? If you think it will change, indicate in what direction and by how much(d) Suppose now that the supply curve shifts down in a parallel fashion (that is, its slope is unchanged). The new competitive equilibrium price is S60 per kilogram Write the equation for the new supply curve.

In detail show and explain all steps

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