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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

Assume That the Demand Is Represented by the Following Equation QD=100+0.01 Income- 3PQ _ { D } = 100 + 0.01 \text { Income- } 3 PQD​=100+0.01 Income- 3P

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