6. Suppose that US demand for lumber (wood used in construction) is given by

Qd=10 - P + 2Iand that US supply of lumber is given by Qs=10 + 3P where quantities are in million metric tons (MMT), price is in dollars per 100 pounds, andIis US median family income in thousands of dollars. Assume that US median family income is $60,000.

a. Find the equilibrium quantity and price of lumber in a competitive US market.

b. At the equilibrium you identified in part (a), compute the price elasticity of demand for lumber and the income elasticity of demand for lumber.

c. Suppose that lumber producers in Canada are willing to sell their product in the US market according to the supply curve QCs=15 + 2P. Find the equilibrium price and quantity in the US market if Canadian producers are also allowed to sell in the US market?