Using the supply and demand equations for wheat, solve for the equilibrium price and quantity as functions of I and r
What will be an ideal response?
Setting QS = QD we get:
20r + 100p = 4000 - 100p + 10I
Solving for equilibrium price:
p = 20 + .05I - .1r
Plug this into either supply or demand to find equilibrium quantity
Q = 2000 + 5I + 10r
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