(Answered) Asume the demand and supply functions for a good are qd

Economics

Assume the demand and supply functions for a good are Qd = 200 - 5P + 0.002 INC0 , Qs = -100 + 8P , where INC0 is the exogenously determined average income.

(a) Find the equilibrium price and quantity if the average income is 45,000 dollars.

(b) Draw the demand and supply curves.

(d) Find the new equilibrium solution. What is the impact of rise in income?

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