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Suppose the market for standard one-family houses in a Canadian city is described by the equations Qd=(165+IM)-2.5P, and Qs=-60+10P, where Q represents the number of houses demanded or supplied per ye

Suppose the market for standard one-family houses in a Canadian city is described by the equations Qd=(165+IM)-2.5P, and Qs=-60+10P, where Q represents the number of houses demanded or supplied per year (in 10s), P represents the price in 10 000s, and IM is the number of families immigrating into the city during the year, in 10s. a) What is the equilibrium number of houses and the equilibrium price if 350 families have immigrated within the year (IM =35). b) Show this situation on your graph.

 

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