In the Market for Good X, Demand Is Q^D =

Multiple Choice

In the market for good X, demand is Q^D = 6,000 - 0.8P and supply is Q^S = 0.4P - 300. Suppose that an increase in consumer income makes consumers willing to pay $500 more per unit of good X. Also, a technological breakthrough in production makes firms willing to sell good X for $250 less per unit. What is the new equilibrium price?

A) $1,200
B) $2,000
C) $4,800
D) $5,500