A perfectly competitive market with the following demand and supply conditions:
QD = 14,000 – 1,500P
QS = -6,000 + 1,000P
(a) Find the equilibrium price P and quantity Q in this market.
(b) If there are 50 identical firms in this market, how much is each firm producing (q)? How much profit is each firm making? q = _______; profit = _______;
(c) Suppose that demand in the market shifts to QD’ = 16,500 – 1,500P. What is the...