Use the following demand and supply functions: Demand:Qd = 900 - 60PSupply:Qs = - 200 + 50PLet supply remain constant; an increase in income causes consumers to be willing and able to buy 220 more units at each price than they were previously. The new equilibrium price and quantity are
A. P = $15 and Q = 600.
B. P = $10 and Q = 520.
C. P = $12 and Q = 400.
D. P = $10 and Q = 80.
Answer: C
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