Suppose the supply and demand for wheat is given by:
Supply: Qs = 1800 + 240P
Demand: Qd = 2550 + 10I - 266P,
Where P = the price per bushel of wheat and I = income. The current
value of I is 100.
a. Find the current equilibrium price and quantity of wheat sold in the
b. Find the equilibrium price and quantity if income increases to 150
Equilibrium Price, Supply and Demand Equations are investigated.