Assume the demand function for a product is given by QD = 20,000 – 10P + 0.4I, where P = price of the product, and I = average income of consumers. Also, assume the supply function of the product is given by QS = 30P. If the market for the product is perfectly competitive, and the average income of consumers is $10,000, what are the equilibrium price and quantity in this market?
Assume the demand function for a product is given by QD = 20,000 – 10P + 0.4I, where P = price of the product, and I = average income of consumers. Also, assume the supply function of the product is given by QS = 30P. If the market for the product is perfectly competitive, and the average income of consumers is $10,000, what are the equilibrium price and quantity in this market?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 8WNG
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Assume the demand function for a product is given by QD = 20,000 – 10P + 0.4I, where P = price of the product, and I = average income of consumers. Also, assume the supply function of the product is given by QS = 30P. If the market for the product is
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