Question One a) The inverse demand and supply functions for a commodity are Pa = 400 – 0.3Q P, = 40 + 0.3Q Where P shows the market price and Q shows the quantity. Subscript d represents demand and...

Extracted text: Question One a) The inverse demand and supply functions for a commodity are Pa = 400 – 0.3Q P, = 40 + 0.3Q Where P shows the market price and Q shows the quantity. Subscript d represents demand and subscript s represents the supply. Calculate the equilibrium price and quantity, P* and Q*. b) Given the following national income model Y = C +1+ G C = co + c,Ya Ya = Y – T T = to + t,Y 1 = l, G = Go Co = 100; I, = 80; c, = 0.8; Go = 300; t, = 250; t = 0.2 i) Name the endogenous and exogenous variables in the model ii)Find the equilibrium income, Ỹ