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Unformatted text preview: = 34 2 + 20 3 + 5 = 18 3 + 10 + 2 Everyone else has the demand function = 0 . There is only one substitute for X, and it sells at a price of = 3 . There is also just one complement, with price = 4 . Karens and Petes income levels are = 30 and = 50 . Draw the market demand curve. 4. Suppose the suppliers of good X in question 3 face an aggregate supply function of = 300 + 15 5 2 3 Suppose further that the suppliers face a wage bill of = 1 , the interest rate is = 5 and raw materials cost = 3 . How many units of good X will be sold in equilibrium?...
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This note was uploaded on 10/03/2011 for the course ECON W3211 taught by Professor Elmes during the Fall '09 term at Columbia.
- Fall '09