Consider the market for trucks. Assume that the demand for trucks is given by

Question

60 2 5 D Q P Y where P is price per truck and Y is the income of the buyers. The
supply of trucks is given by 30 5 3 S Q P W where W is the price of all the materials
needed to produce a truck. Solve for the equilibrium price P* and equilibrium quantity
Q* of trucks bought and sold. [10 marks]
4.