In Some Markets, Demand Can Be Approximated by

question 248

Essay

In some markets, demand can be approximated by
  Q = 50 − 5P + 10Y
where Q is quantity, P price per unit, and Y = buyers' income. Supply can be approximated by
  Q = − 5 + 10P.
a. If Y = 20, what is equilibrium price and output?
b. If Y rises to 25, what is the new equilibrium price and output?

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Definitions:

Magistrate

A local official authorized to issue orders in legal matters and conduct minor court hearings and proceedings.

Cross-Sequential Research

A research method combining both longitudinal and cross-sectional studies to analyze changes across different ages and cohorts over time.

Cohort Effect

Similarities in behavior among a group of peers that stem from the fact that group members were born at the same time in history.

Longitudinal

A study or research design that follows the same subjects over a period of time to observe changes or development.