demand equation for haircuts is p=50-1 qd and supply equation is p=20+0.5q.as a result in decrease...

demand equation for haircuts is p=50-1 qd and supply equation is p=20+0.5q.as a result in decrease in income,th demand curve for haircuts shifts,the new demand curve is p=110-qd. graph original demand and supply curves,with original equilibrium price and quantity

Solutions

Expert Solution

Given,

Supply equation,

At equilibrium the quantity demanded is equal to quantity supplied. Equate demand and supply function

P = 50 - 20 = $ 30 per unit

Use the following demand schedule to plot the graph

The original demand and supply curve would be as shown in the graph below

I have done it manually please consider it for reference purpose

Have done it using excel too got the following graph.

In the question it has been asked to plot the original demand and supply curve. The above graph shows the same.

When new demand curve is included the graph would be as shown below

Please contact if having any query will be obliged to you for your generous support. Please help me it means a lot to me, please help. Thank you.

Rahul Sunny answered 1 month ago

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