In some markets, demand can be approximated by Q = 50?5P + 10Ywhere 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?
?
What will be an ideal response?
a Equate the supply and demand equations, substituting 20 for Y:50?5P + 10(20) =?5 + 10P 50 + 200 + 5 = 15P P = 17, Q = 165b. Equate the supply and demand equations, substituting 25 for Y: 50?5P + 10(25) =?5 + 10P 50 + 250 + 5 = 15P P = 20.33, Q = 198.33
Economics
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The above table shows some of the balance of payments accounts for Urland. What is Urland's balance on the current account?
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Economics