At the perfect competition, demand and supply are equal.
Qd = Qs
2200 - 3p = 1800 +2p
2200-1800= 2p +3p
P = 400/5
P = 80
Qd = 2200 - 3* 80
Qd = 2200 - 240
Qd = 1960
The equilibrium price and equilibrium quantity of the commodity X is Rs 80 and 1960 units.
● The x-axis represents quantity and the y-axis represents price.
● The market is in equilibrium at point E.
● A decrease in the supply will shift the supply curve towards the left.
● The original supply curve is SS. It will shift left towards S'S'.
● This will create excess demand which will lead to an increase in competition among the buyers.
● The new supply curve intersects the original demand curve at a higher equilibrium point of E'.
● The equilibrium price will increase from OPe to OPe'.
● The equilibrium quantity will fall from OQe to OQe'.
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