An economist has estimated that the demand function for cars is approximately D = −400P + 4I where I is the mean household income. The Supply of cars is estimated to be S = 2p (a) What is the equilibrium price of cars (it will be a function of I)? (b) How does the equilibrium price of cars change when I changes?

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An economist has estimated that the demand function for cars is approximately D = −400P + 4I where I is the mean household income. The Supply of cars is estimated to be S = 2p

(a) What is the equilibrium price of cars (it will be a function of I)?
(b) How does the equilibrium price of cars change when I changes?

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The demand function has a captial P and the supply has a lowercase. Would these variables change the answers?

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