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ADVANCED ANALYSIS Assume that demand for a commodity is represented by the equation

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         P=10−0.2Q

d

.

P=10−0.2Qd.


Supply is represented by the equation


         P=2+0.2Q

s

,

P=2+0.2Qs,


where Qand Qs are quantity demanded and quantity supplied, respectively, and P is price.


Instructions: Enter your answers as whole numbers.


a. Using the equilibrium condition Qs = Qd, determine equilibrium price.

    



b. Now determine equilibrium quantity.

    

Top Answer

a. Equilibrium price = $6... View the full answer

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