Suppose the demand and supply curves of a Commodity X is given by the following two equations simultaneously:
Qd = 200 - p , Qs = 50 + 2p
(i) Find the equilibrium price and equilibrium quantity.
(ii) Suppose that the price of a factor of production producing the commodity has changed, resulting in the new supply curve given by the equation:
Qs'=80+2p`
Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.