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The demand for rental units is Q = 2,000 - p + Y/10 , where p is the rental price and Y is median income.

  1. The demand for rental units is Q = 2,000 - p + Y/10, where p is the rental price and Y is median income. The supply of rental units is Q = p - Y/40.
    1. What are the equilibrium price (p*) and quantity (Q*) in terms of Y.
    2. Does equilibrium price p* have a positive or negative relationship with Y, show with calculus.
    3. Does equilibrium quantity Q* have a positive or negative relationship with Y, show with calculus.
    4. Based on your answer to parts b andc, does supply or demand shift by more when income changes?

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