University of Wisconsin Department of Economics Economics 301: Intermediate Microeconomic Theory Korinna K. Hansen Learning Guide 5Due Date: Friday, March 7, 2008Reading Assignment: Varian Chapter 16 up to the middle of page 302. Problem Assignment: Problems 2 and 3 on page 309. Objectives:After completing the assignment you should be able to do the following: 1. Be able to graph and describe the market equilibrium given a market demand and market supply. Why is this a stable equilibrium? 2. Be able to solve algebraically for the equilibrium price and quantity. 3. Be able to graph and explain what is special in a market equilibrium when the supply curve is
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