# Question: the following formulas represent the demand and supply curves for...

###### Question details

The following formulas represent the demand and supply curves
for corn:

QD = 1,600 – 125 * P

QS = 440 + 165 * P

Calculate the equilibrium price and quantity in this market and
illustrate this graphically. Suppose corn becomes less popular so
the market demand curve is now given by QD = 1,020 – 125 * P.
Calculate the new equilibrium price and quantity and illustrate the
movement from the old equilibrium to the new one graphically.