Assume That the Demand Is Represented by the Following Equation $$Q _ { D } = 50 + 0.1 \text { income } - 2 P$$

Essay

Assume that the demand is represented by the following equation:
$$Q _ { D } = 50 + 0.1 \text { income } - 2 P$$ Also assume that the supply is represented by the following equation:
$$Q _ { s } = 2 P - 30$$ (i)Assume that the consumer income is $1,000. Please compute the market equilibrium price and quantity.
(ii)Now, assume that the economy goes into a recession and the consumer's income decreases to $600. What will the new equilibrium values be now?
(iii)Graph the old and the new equilibrium and all the necessary curves.