Determine demand for flower bouquets in a suburban town

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Demand for flower bouquets in a suburban town is described by: QD = 50 - 5 P + 2 Y, where Q is quantity, P is price per unit, and Y is an index of consumer income. Similarly, supply is described by QS = 10 P - 5.
a) If Y = 100, what is equilibrium price and output?
b) If Y rises to 122.5, what is the new equilibrium price and output?

Reference no: EM13199944

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