Essay
In some markets, demand can be approximated by
Q = 50 − 5P + 10Y
where Q is quantity, P price per unit, and Y = buyers' income. Supply can be approximated by
Q = − 5 + 10P.
a. If Y = 20, what is equilibrium price and output?
b. If Y rises to 25, what is the new equilibrium price and output?
Correct Answer:
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a Equate the supply and demand equations...View Answer
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