Suppose the demand curve for a product is given by Q 300 2P 4I,

Question:

Suppose the demand curve for a product is given by Q  300  2P  4I, where I is average income measured in thousands of dollars. The supply curve is Q  3P  50.
a. If I  25, find the market-clearing price and quantity for the product.
b. If I  50, find the market-clearing price and quantity for the product.
c. Draw a graph to illustrate your answers.