If the price and quantity for an inferior good, Good X, is $8 and 6 units at the original equilibrium, what is one possibility for the new equilibrium of Good X if we see income increase and all other factors stay constant?
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Imagine the market for Good X has a demand function of QDX = 100 - 2PX - 4PY + 0.05M + 0.1AX and a supply function of QSX = 4PX - 10, where PX is the price of Good X, PY is the price of Good Y, M is the average consumer income, and AX is the amount spent to advertise Good X. If the price of Good Y is $5, M is $5000, and AX is $10,000, find the equilibrium price of Good X.
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