1_Market+equilibrium

1_Market+equilibrium - At the lower price P 2 there is a...

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MARKET EQUILIBRIUM Rubinfeld & Pindyck 2.2
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e Market Mechanism The Market Mechanism At the higher price P 1 , a surplus develops, so price falls.
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Unformatted text preview: At the lower price P 2 , there is a shortage, so price is bid up. The market clears at price P and quantity Q ....
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1_Market+equilibrium - At the lower price P 2 there is a...

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