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    Market equilibrium

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    A firm has a demand function: Q= 30- 0.2P and a supply function Q = -30 + 0.4P

    a. Find the market equilibrium price (P) and quantity (Q).
    b. Using a graph to discuss the impacts on the market equilibrium price (P) and quantity (Q) of an increase in consumer income. Assume the product is normal good.

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    https://brainmass.com/economics/demand-supply/market-equilibrium-price-quantity-334400

    Solution Summary

    The Solution provides the market equilibrium price (P) and quantity (Q). Also impacts on the market equilibrium price (P) and quantity (Q) of an increase in consumer income have been discussed using graph assuming that the product is normal good.

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