Problem: Suppose the demand for gizmos is given by the following expression: P=20-5QD +4 I (Income) In this expresiion, P is the price gizmo, quantity is given in millions of units, and I is income....

Problem:

Suppose the demand for gizmos is given by the following expression: P=20-5QD +4 I (Income)

In this expresiion, P is the price gizmo, quantity is given in millions of units, and I is income.

a. Given that income is 20, calculate Price when QD is 1,2,3 and 4. Show your results in he table below. Show your work.

P QD I

1 20

2 20

3 20

4 20

b. Now assume that income has decreased to 10. Calculate the new quantities.

P QD I

1 10

2 10

3 10

4 10

Graph the demand curves based on the info above