Assume that the equation for demand for baguettes at a small bakery is Qd = 80-10Pb+3Y, where Qd is the quantity of bread demanded in loaves, Pb is the price of bread in dollars per loaf, and Y is the average income in the town in thousands of dollars. Assume also that the equation for supply of bread is Qs = 30+20 Pb-30 Pf, where Qs is the quantity supplied and Pf is the price of flour in dollars per pound. Assume finally that markets clear, so that Qd=Qs.

a. Assume that Y = Pf = 0, calculate the market clearing price and quantity of baguettes.

b. If Y is 10 and Pf is $1, calculate the market clearing price and quantity of baguettes.

c. If the average income in the town increases to 15, calculate the market clearing price and quantity of baguettes.