If the cost of transportation between the two markets is Pt = 2, what would be the equilibrium values of D1, S1, P1, D2, S2, Qt, and Pt? Solve algebraically. question 2 that is pictured Part 1: Spatial EquilibriumThe demand in market 1 is D, = 24 - P1The supply in market 1 is S, = -2 + P,The demand in market 2 is D2 = 16 - P2The supply in market 2 is S-2+P,1.If no trade occurs between the markets, what are the equilibrium values of D,, S,P.D. S, and P;? Solve algebraicalyIf the cost of transportation between the two markets is Pr = 2, what would be theequilibrium values of D,, S, P, D S2 P, Q, and Pr? Solve algebraicallyShow the above situation graphically, both with and without trade Please label.everythingInsert an image of your graph herePart 2: Storage EquilibriumAssume that the market supply curve for potatoes is Os, = 12+0 SP, and that thereare12+0.5P.and that theme are23*** -II

Answered: Image /qna-images/answer/a8ae1f95-4a0e-4846-9fef-a3167d0e4727.jpg

Answered: Part 1: Spatial Equilibrium The demand…

Part 1: Spatial Equilibrium The demand in market 1 is D, = 24 - P1 The supply in market 1 is S, = -2 + P, The demand in market 2 is D2 = 16 - P2 The supply in market 2 is S2 = 2 + P2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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