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Question 2 Consider a good that has existing demand curve given by $Q = 92 - 6p$ and existing supply curve given by $Q = 12 + 2p$. Suppose there is a change in the demand curve and the new demand curve is given by $Q = 75 - 7p$. There is no change in the supply curve. (a) [4 points] Is the new demand curve a parallel shift from the existing demand curve? Briefly explain your answer. (b) [4 points] Does the new demand curve lie on the right or left of the existing demand curve? Briefly explain your answer. (c) [3 points] Determine the existing equilibrium price and quantity before the change in the demand curve. (d) [3 points] Determine the new equilibrium price and quantity after the change in the demand curve.

          Question 2 Consider a good that has existing demand curve given by $Q = 92 - 6p$ and existing supply curve given by $Q = 12 + 2p$. Suppose there is a change in the demand curve and the new demand curve is given by $Q = 75 - 7p$. There is no change in the supply curve.
(a) [4 points] Is the new demand curve a parallel shift from the existing demand curve? Briefly explain your answer.
(b) [4 points] Does the new demand curve lie on the right or left of the existing demand curve? Briefly explain your answer.
(c) [3 points] Determine the existing equilibrium price and quantity before the change in the demand curve.
(d) [3 points] Determine the new equilibrium price and quantity after the change in the demand curve.

Question 2 Consider a good that has existing demand curve given by Q = 92 - 6p and existing supply curve given by Q = 12 + 2p. Suppose there is a change in the demand curve and the new demand curve is given by Q = 75 - 7p. There is no change in the supply curve.
(a) [4 points] Is the new demand curve a parallel shift from the existing demand curve? Briefly explain your answer.
(b) [4 points] Does the new demand curve lie on the right or left of the existing demand curve? Briefly explain your answer.
(c) [3 points] Determine the existing equilibrium price and quantity before the change in the demand curve.
(d) [3 points] Determine the new equilibrium price and quantity after the change in the demand curve.

Added by Ethan C.

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