Question
The equations for Supply and Demand of reclaimed wooden pallets (in hundreds of units) in Seattle are: QD = 200 - 10PO + 5PC -
The equations for Supply and Demand of reclaimed wooden pallets (in hundreds of units) in Seattle are:
QD = 200 - 10PO + 5PC - 2Inc
QS = -90 + 5PO - 12PT
WherePo is the price of a wooden pallet, Pc is the price of a regular non-reclaimed wooden plank, Inc is the average income of age brackets 16-39 years old (in thousands of dollars) and PT is the rental price of a delivery truck, per hour.
In the same graph, find the equilibrium price and quantity of reclaimed wooden pallets traded in Seattle under the following circumstances:
A) Regular wooden plank costs $12, average income is $40,000 and delivery truck costs $10 per hour to rent
B) Regular wooden plank costs $12 average income is $20,000 and delivery truck costs $10 to rent.
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