ECDN 565 DENLAND St SUPPLY EXAM PAGE 3 OF T 3. This question begins with equations that have been estimated for the supply and demand of a normal good. i. In part a, you must find the equilibrium level of price and quantity for the market ii. In part b, there has been an increase in the income of all consumers causing a change in demand but no change in supply. You must find the new equilibrium levels of price and quantity. iii. In part c, there has been an increase in the cost of the labor used to produce the good resulting in a decrease in the supply of the good. Using the demand equation from part b, what are the effects upon equilibrium price and quantity brought about by this change in supply? Part A: To begin, use the following equations to nd the market price and quantity: QB = ZDQBE 145(1)}; Q5 = 459.95 + IE.54(P) Part B: Due to a tax cut, consumers experience an increase in income. As income rises, the demand for the good described in PaJL increases. Using the new demand equation below with the same supply equation from Part A, solve for the new market price and quantity: QB = 44163 _. 145(P}: Q5 = 459.95 + 5.54m} Part C: The government has decided that the production of the good in this market produces too much pollution and institutes a new set of pollution abatement standards that raises the cost of production; this causes a decrease in supply. Using the demand equation from Part B and the new supply equation below, solve for the new market price and quantity: QB = 44168 ~ 1450?};{15 = 411.32 + 5.540?)