Suppose that you have the following demand and supply curve for sneakers: Qd = 400 – 3P Qs = 200 + 2P Solve for the equilibrium price and quantity. Calculate consumer expenditures on sneakers. Would a...

Suppose that you have the following demand and supply curve for sneakers:

Qd = 400 – 3P

Qs = 200 + 2P

1. Solve for the equilibrium price and quantity.


2. Calculate consumer expenditures on sneakers.


3. Would a 5% increase in price (due to external factors) cause consumer expenditures to rise or fall?