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demand function Qd = a - bP and supply function Qs = dP - c , using Cramer’s rule determine equilibrium price and equilibrium

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 6SQ

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For demand function Qd = a - bP and supply function Qs = dP - c , using Cramer’s rule determine equilibrium price and equilibrium

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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