Following a highly successful influencer marketing campaign, the demand for smart fitness bands increases by 4,000 units at every price point. At the same time, a fall in the production costs of touchscreens increases the supply of smart fitness bands by 8,000 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) |
|---|---|---|---|---|
| 80 | 10 | 18 | ||
| 75 | 12 | 16 | ||
| 70 | 14 | 14 | ||
| 65 | 16 | 12 | ||
| 60 | 18 | 10 |