What will be the forecast of quantity demanded

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Reference no: EM13209322

Given the following Demand and Supply functions answer questions a thru d.
Qd=120-2P+5I
Qs=-10+4P-3W
where
P=$3 is the price of the good.
I=$100 per capital consumer income
W= $50 wage rate

a. Derive the demand and supply curves (qd and qs).

b. What is the equilibrium price and quantity?

c. If P=$160 what will be the forecast of quantity demanded and quantity supplied?

d. At the price of $160 will there be either a surplus or shortage. Which is it and what is the amount?

Reference no: EM13209322

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