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