Question

Due to a recession that lowered incomes, the 2008 market prices for last-minute rentals of U.S. beachfront properties were lower than usual. Suppose that the inverse demand function for renting a beachfront property in Ocean City, New Jersey, during the first week of August is

p=1000 - Q + Y/20

where Y is the median annual income of the people involved in this market, Q is quantity, and p is the rental price. The inverse supply function is

p= Q / 4 + Y / 40

Derive the equilibrium price P^* and the Quantity Q^* in terms of Y?

Q^{*= ___} P^*= ____