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Unformatted text preview: G = G 1 – G ; ∆ P = P 1 – P ; ∆ Q = Q 1 – Q • P 1 = (a – d +cG 1 )/(b+e) P = (a – d +cG )/(b+e) 2200 ∆ P = ∆ G c/(b + e) • Q 1 = d + e(a – d +cG 1 )/(b+e) Q = d + e(a – d +cG )/(b+e) 2200 ∆ Q = ∆ G ec/(b + e) Exercise: Solve for x, y, z • x = 6z + 3h – 4a + 10 • y = 4z – h + 6 • x = y • Substitute 1 st and 2 nd into 3 rd 6z + 3h – 4a + 10 = 4z – h + 6 • Solve for z 2z = 4a – 4h – 4 ⇒ z = 2a – 2h – 2 • Substitute z into 1 st and 2 nd x = 12a – 12h – 12 + 3h – 4a + 10 = 8a – 9h – 2 y = 8a – 8h – 8 – h + 6 = 8a – 9h – 2 Exercise: Impact of ∆ h = 3 • x = 8a – 9h – 2 • y = 8a – 9h – 2 • z = 2a – 2h – 2 2200 ∆ x = – 9 ∆ h = – 27 2200 ∆ y = – 9 ∆ h = – 27 2200 ∆ z = – 2 ∆ h = – 6...
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 Fall '08
 cramton
 Economics, Supply And Demand, demand equation Qd, Equations and Comparative Statics

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