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People's demand depends on the price of the goods and their income: C=90-3P+0.11 (a) The population's income is 300. Find the optimal quantities to consume
People's demand depends on the price of the goods and their income: C=90-3P+0.11 (a) The population's income is 300. Find the optimal quantities to consume if the price of the good is P, = 10 and Py = 20. Graph the demand curve. Label axes, points, and curves. Put values on the axes and show with dashed lines how prices map into consumption. (b) Now the income changes to 150. For both of the quantities you found in (a), C, and Cg, find the value of the prices, P; and P, at which the quantity would be optimal given the new income. Show the shift of the demand curve on a new graph. (b) Now the income changes to 150. For both of the quantities you found in (a), C, and Cg, find the value of the prices, P- and Pp at which the quantity would be optimal given the new income. Show the shift of the demand curve on a new graph. (c) Find the marginal effect of price on quantity consumed in this problem. Show work to get credit
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