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.

(e) [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.