Suppose that the demand function for men's haircuts in a city is as follows:

Qd = 500 - 30p +0.08M,

where p is the price of haircuts and M is the average monthly income in the city.

Suppose that the supply function for haircuts is

Qs = 100 + 20p -30w

where p is the price of haircuts and w is the average hourly wage of barbers.

Assume that M = $5000 and w = $10

Calculate the equilibrium price in this market

	a.	$20
	b.	$25
	c.	$22
	d.	None of the choices