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?

---

Definitions:

Debt-to-Equity Ratio

A gauge of a firm's financial risk, determined by dividing its overall debts by the equity of its shareholders.

Year 2

A term often used to refer to the second year of a business operation, project timeline, or financial plan.

Return on Equity

A measure of a company's profitability, indicating how much profit a company generates with the money shareholders have invested.

Year 2

Typically refers to the second year of an entity's operations, plan, or financial reporting.