Assume a demand equation:Qd = 9 - 0.1p - Pc + 0.01ps+ 0.0001Yand a supply equation:Qe = 0.1p - 0.02p; + 0.01N + 0.01T - 0.1wwherep = price of the goodP. = price of a complement = $3Q = quantity in thousands of unitsP; = price of an input = $450Ps= price of a substitute = $200N = number of firms = 700T= index of technology = 300w = wage rate = $10Y = consumer income = $20,000If the price is $55, there will be anofthousand units.

supply and demand, refers to the relationship between the quantity of a commodity that producers…

Pc 0.01Ps and a supply equation: Qs = 0.1p - 0.02p; + 0.01N + 0.01T - 0.1w where p = price of the good Pc = price of a complement = $3 Ps= price of a substitute = $200 Y = consumer income = $20,000 Q = quantity in thousands of units P, = price of an input = $450 N = number of firms = 700 T= index of technology = 300 w = wage rate = $10 If the price is $55, there will be an of thousand units.

Pc 0.01Ps and a supply equation: Qs = 0.1p - 0.02p; + 0.01N + 0.01T - 0.1w where p = price of the good Pc = price of a complement = $3 Ps= price of a substitute = $200 Y = consumer income = $20,000 Q = quantity in thousands of units P, = price of an input = $450 N = number of firms = 700 T= index of technology = 300 w = wage rate = $10 If the price is $55, there will be an of thousand units.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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