Assume that demand for a commodity is represented by the equation P = 30 – 0.6 Q d, and supply by the equation P = 20 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium condition Qs = Qd
1: Solve the equations to determine equilibrium price.
2: Now determine equilibrium quantity.
3: Graph the two equations to substantiate your answers and label these two graphs as D1 and S1.
4: Furthermore; using demand and supply show what happen to equilibrium price and quantity if eating this product causes cardiac