Assume That the Demand Is Represented by the Following Equation $$Q _ { D } = 100 + 0.01 \text { Income- } 3 P$$

Essay

Assume that the demand is represented by the following equation:

$$Q _ { D } = 100 + 0.01 \text { Income- } 3 P$$ Also assume that the supply is represented by the following equation:

$$Q _ { s } = P - I O$$ (i)Assume that the consumer income is $3,000. Please compute the market equilibrium price and quantity.
(ii)Now, assume that the economy goes into a recession and the consumer's income declines to $2,000. What will the new equilibrium values be now?