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Problem:
Suppose the demand for gizmos is given by the following expression: P=20-5QD +4 I (Income)
In this expresiion, P is the price gizmo, quantity is given in millions of units, and I is income.
a. Given that income is 20, calculate Price when QD is 1,2,3 and 4. Show your results in he table below. Show your work.
P QD I
1 20
2 20
3 20
4 20
b. Now assume that income has decreased to 10. Calculate the new quantities.
1 10
2 10
3 10
4 10
Graph the demand curves based on the info above
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