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Question

Due to a recession that lowered incomes, the 2008 market prices for last-minute rentals of U S beachfront properties were lower than usual. Suppose that the inverse demand function for renting a beachfront property in Ocean City. New Jersey, during the first week of August is p = 2000 - Q + Y/10, where Y is the median annual income of the people involved in this market, Q is quantity, and p is the rental price The inverse supply function is p = Q/4 +/20 Derive the equilibrium price, p*, and the quantity, Q*, in terms of Y. The equilibrium Quantity, Q*, is The equilibrium price, p*, is