Q. In the market for a good x, there are two consumers, A and B. P and Q represent the price and quantity of that good x, respectively.
Consumer A
Consumer B
Market for good X
P
A
Q
Find the market demand and carefully draw that on the right-hand side panel. If the supply curve of good x is given as P=Q, what is the market equilibrium price and quantity?
3. Suppose there is news that good x is good for health and this news caused additional demand for good x at a given price level. What would be the new equilibrium price and quantity?