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The supply and demand for wheat are given by 52) QS= 20 + 100p
QD = 4000 - 100p +10Y
Where Y is the average consumer income.
a. How does the equilibrium quantity change with respect to average consumer income, all other things being equal?
b. Solve for the equilibrium price and quantity as functions of the consumer income Y.
c. Compute the comparative statics of the equilibrium price and quantity with respect to income.
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Identify any additional information you would need to recommend a solution, and explain where you would likely find that information.
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