Assume the Demand Function for Scooters Is Given by Q_D

Multiple Choice

Assume the demand function for scooters is given by Q_D = 20,000 - 10P + 0.2I,where P = price of a scooter,and I = average income of consumers.Also,assume the supply function of scooters is given by Q_S = 20P.If the market for scooters is perfectly competitive,and the average income of consumers is $20,000,what are the equilibrium price and quantity in this market?

A) The equilibrium price is $16,000,and 800 scooters are traded.
B) The equilibrium price is $1,600,and 32,000 scooters are traded.
C) The equilibrium price is $800,and 16,000 scooters are traded.
D) The equilibrium price is $800,and 32,000 scooters are traded.