A hardware store in a regional city is well known for its range of gardening tools and building supplies particularly timber. One year, there is an over-supply of timber, which means that the hardware store must reduce the price of its timber to clear excess stock. For a limited time, the hardware store manager decides to have a timber sale, during which GST of 10% does not apply. Your task is to determine the consequences of the short-term removal of 10% GST.

The supply and demand equations are given by

Demand Equation: = 175 15

Supply Equation: = 0.0772 + 5.5 + 66

where q is the mass of timber (in hundreds of kilograms) ; p is the price of timber in dollars. a and b are coefficients to be chosen below.

Steps to complete to undertake the investigation 1. Obtain two random numbers for a and b between 0.1 and 0.9 inclusive. Use the Excel random function =Rand() or the RANDOM key on your calculator. 2. Find the equilibrium price and quantity algebraically, without the price decrease. 3. Update the supply equation to include the removal of 10% GST. 4. Use algebra to find the new equilibrium price and quantity.

I have a as .2 and b as .7

I want to know what the new equation is after the removal of 10% gst,? and then find the new equilibrium price and quantity