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Suppose the demand curve for a product is given by Q = 300 - 2P + 4I, where I is average income meas- ured 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.
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