The following relation describe monthly demand and supply for acomputer support service catering to small...
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Economics
The following relation describe monthly demand and supply for acomputer support service catering to small businesses: Q D = 3,000- 10 P Q S = 1,000 + 10 P Where Q is the number of businesses thatneed services and P is the monthly fee, in dollar. a. At whataverage monthly fee would demand equal zero? b. At what averagemonthly fee would supply equal zero? c. Plot the supply and demandcurves. d. What is the equilibrium price/ output level? e. Supposedemand increase and leads to a new demand curve: Q D = 3,500 - 10 PWhat is the effect on supply? What are the new equilibrium P and Q?f. Suppose new suppliers enter the market due to the increase indemand so the new supply curve is Q = -500 + 10 P. What are the newequilibrium price and equilibrium quantity? g. Show these changeson the graph.
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