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