Question: 14. Note: This problem requires some basic algebra. The demand for ice cream is QD = 70 - 4P, and the supply of ice cream

14. Note: This problem requires some basic algebra. The demand for ice cream is QD = 70 - 4P, and the supply of ice cream is QS = 10 + 2P, where P is the price of ice cream.

a. Find the equilibrium price and quantity of ice cream.

b. Suppose consumers’ income increases and ice cream is considered as a normal good. As a result, the demand curve for ice cream becomes QD = 100 - 4P. Find the new equilibrium price and quantity of ice cream.

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