The situation
Demand is 120 − 2P crates and supply is 20 + 3P crates. A temporary transport disruption reduces supply by 10 crates at every price.
Your task
Find the original and disrupted clearing prices.
Reveal step-by-step solution
Set up the problem
Set demand equal to original supply: 120 − 2P = 20 + 3P, so P = ₹20 and Q = 80.
Work through the numbers
New supply = 10 + 3P. Solve 120 − 2P = 10 + 3P, giving P = ₹22 and Q = 76.
Interpret the result
The supply shift raises the modeled clearing price by ₹2 and lowers trade by four crates.
What to remember
Change the equation for a curve shift. Substitute the price into both equations to check clearing.