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Equilibrium Price, Supply and Demand Equations

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
market place.

b. Find the equilibrium price and quantity if income increases to 150

Solution Summary

Equilibrium Price, Supply and Demand Equations are investigated.

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