4 ms·
That is exactly how they work if both demand and supply shift. Example: P_d=100-Q P_s=Q Solve P_d = P_s to get Q=50, P=50 Take a left shift like 80
by mamonster 3y ago
That is exactly how they work if both demand and supply shift.
Example: P_d=100-Q
P_s=Q
Solve P_d = P_s to get Q=50, P=50
Take a left shift like 80 - Q in demand, and take a left shift in supply like P=1.66Q. Solving now you get Q=30, P=50