Qd = 80 -6P+ 2Y
Qs = 10 + 3P-0.2W
Where Qd is quantity demanded, P is price, Y is income, Qs is quantity supplied, and W is the wage rate for labor. Assume the following average values for the shifters are:
Y = 10
W = 10
Compute the equilibrium price and quantity for this problem.
Assume that the income changed from Y= 10 to Y= 7. What are the equilibrium price and quantity now