Assume That the Demand Is Represented by the Following Equation $$Q _ { 0 } = 500 + 0.05 \text { income } - 5 P$$

Essay

Assume that the demand is represented by the following equation:
$$Q _ { 0 } = 500 + 0.05 \text { income } - 5 P$$ Also assume that the supply is represented by the following equation:
$$Q _ { s } = 5 P - 50$$ (i)Assume that the consumer income is $1,000. Please compute the market equilibrium price and quantity.
(ii)Now, assume that the consumer's income increases to $2,000. What will the new equilibrium values be now?
(iii)Graph the old and the new equilibrium and all the necessary curves.