Please read these problems carefully and provide your full detail explanation. Then save it and drop it as an attachment file in The assignment box. The Due date for this writing assignment is FEB 26 and the cut of date would be FEB 26. After this date no paper will accepted. Use Microsoft word and MLA format for this homework. If you cannot use Excel to graph the Demand and Supply , then graph them by hand and scan it and attach it. This writing assignment has 15% of total grade per syllabus. If I cannot open any attachment file you will receive zero. Please use Microsoft Word and not any other link that cannot opened. If you have any question please e-mail me.
1: Assume that demand for a commodity is represented by the equation P = 30 – 0.2 Q d, and supply by the equation P = 20 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium condition Qs = Qd ,
1: Solve the equations to determine equilibrium price.
2: Now determine equilibrium quantity.
3: Graph the two equations to substantiate your answers and label these two graphs as D1 and S1.
4: Furthermore; assume the demand for this product increases because of a change in income.
A: graph the new demand curve and label as D 2.
B: What will be the new equilibrium price and quantity compare to the initial one.
C. Is this product normal good or inferior good?
1: Assume that demand for a commodity is represented by the equationP = 30 – 0.2 Q d, and supply by the equation P = 20 + 0.2 Qs where Qd andQ s are quantity demanded and quantity supplied,…