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## Order the answer to: Consider the following sequence of changes in the demand and

EssayParlour business-economics Order the answer to: Consider the following sequence of changes in the demand and

# Order the answer to: Consider the following sequence of changes in the demand and

Question Consider the following sequence of changes in the demand and supply for cab service in some city. The price P is a price per mile, while quantity is the total length of cab rides over a month (in thousands of miles). January: Initial demand and supply are given by the equations Qs = 30P – 30 (when P ? 1), and Qd = 120 – 20P February: Due to higher prices of gasoline, the supply of cab service changed to Qs = 30P – 60 (when P ? 2). March: Over the spring break, the demand for taxi service was higher and therefore demand curve was given by the equation Qd = 140 – 20P. a) For each month find equilibrium price and quantity. b) Illustrate your answer with a graph. Illustrate the equilibrium prices and quantities on the graph. business-economics 