Given the demand and supply equations: Q? = s-kP, - jM, Q: = -h+bP, + àW where M represent income and W represents the wage rate: • Calculate the impact of a change in income on the equilibrium price and quantity. • Will this impact be larger or smaller if the value of k is decreased? Draw diagram(s) indicating all results.

Given the demand and supply equations: Q? = s-kP, - jM, Q: = -h+bP, + àW where M represent income and W represents the wage rate: • Calculate the impact of a change in income on the equilibrium price and quantity. • Will this impact be larger or smaller if the value of k is decreased? Draw diagram(s) indicating all results.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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