b. Draw a graph of the market, showing the equilibrium point. Let's say demand changes in the following way: at any given price, the quantity demanded is reduced by 5 units. Could we have expressed...

Extracted text: b. Draw a graph of the market, showing the equilibrium point. Let's say demand changes in the following way: at any given price, the quantity demanded is reduced by 5 units. Could we have expressed this demand shift as a change in inverse demand? How would we have phrased that? Show the new equilibrium in the graph and describe how the market price and quantity have changed - both nominally (in their own units) and in percentage terms.


Extracted text: P 1. Consider a competitive market where daily supply and demand are QP(P) = 15 - QS(P) = 2P, where quantities are measured in thousands of units and prices are in dollars per unit. Assume that this market does not create any externalities benefits are borne by the sellers and buyers directly involved in the market. 2 meaning that all costs and