(a) Copy and complete the following table of values for the supply function

P = 1/2Q + 20

Hence, or otherwise, draw an accurate sketch of this function using axes with values of Q and P between 0 and 50.
(b) On the same axes draw the graph of the demand function P = 50 − Q and hence find the equilibrium quantity and price.
(c) The good under consideration is normal. Describe the effect on the equilibrium quantity and price when income rises.

Transcribed Image Text:

50 25