Economics 2. Question 2 Given a market for a product with the following demand and supply functions Demand function: Qp = 200 -5P + 2/ Supply function: Qs = -50 + 10P Qo is quantity demanded; Qs is quantity supplied; P is price; and I is income of consumers. 2. 1 Draw a graph with supply curve (SC) and demand curves (DCs) for three cases (I, = 10, 12 = 40, I, = 80). What happens to the DC when income changes from I, to I,? 2.2 For 12 = 40, write the demand function. Calculate the equilibrium price (P*) and quantity (Q"). 2. 3 Calculate income elasticity of demand (Epp) at the equilibrium point. 2. 4 What kind of good is this product? Give a reason for your