In some markets, demand can be approximated by
Q = 50 − 5P + 10Y
where Q is quantity, P price per unit, and Y = buyers' income. Supply can be approximated by
Q = − 5 + 10P.
a. If Y = 20, what is equilibrium price and output?
b. If Y rises to 25, what is the new equilibrium price and output?

Question

In some markets, demand can be approximated by 
  Q = 50 − 5P + 10Y 
where Q is quantity, P price per unit, and Y = buyers' income. Supply can be approximated by 
  Q = − 5 + 10P. 
a. If Y = 20, what is equilibrium price and output? 
b. If Y rises to 25, what is the new equilibrium price and output?

Quizplus · Accepted Answer

The Answer of In some markets, demand can be approximated by 
  Q = 50 − 5P + 10Y 
where Q is quantity, P price per unit, and Y = buyers' income. Supply can be approximated by 
  Q = − 5 + 10P. 
a. If Y = 20, what is equilibrium price and output? 
b. If Y rises to 25, what is the new equilibrium price and output?

In Some Markets, Demand Can Be Approximated by