Following a viral review by a major tech influencer, the demand for custom mechanical keyboards increases by 15,000 units at every price point. Simultaneously, a new automated assembly method reduces manufacturing costs, increasing the supply of these keyboards by 25,000 units at every price point.
Calculate the new equilibrium price and quantity. Use the last two columns of Table 1 for your working.
| Price (£) | Quantity demanded per month (000) | Quantity supplied per month (000) | New quantity demanded per month (000) | New quantity supplied per month (000) |
|---|---|---|---|---|
| 200 | 30 | 30 | ||
| 180 | 35 | 25 | ||
| 160 | 40 | 20 | ||
| 140 | 45 | 15 | ||
| 120 | 50 | 10 |