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:

Asset Accounts

Accounts that represent the different types of economic resources owned or controlled by a business, such as cash, inventory, and equipment.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source of information for the financial statements.

Chart of Accounts

A systematic listing of all accounts used by an organization, typically organized by type such as assets, liabilities, equity, revenues, and expenses.

Balance Column Journal

A type of accounting record that includes columns for recording dates, details of transactions, and corresponding debit or credit balances.