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Qd = 1000 -30*P -0.05*Y + 1*PB Qs = 20 + 10*P -3*W Variable definitions: Qd = quantity demanded of good A; Qs = quantity supplied of good A; P = price of good A; Y = income of the consumer = 1,000; Pg = price of good B = 10; W = wage rate = 20

Qd = 1000 -30*P -0.05*Y + 1*PB Qs = 20 + 10*P -3*W Variable definitions: Qd = quantity demanded of good A; Qs = quantity supplied of good A; P = price of good A; Y = income of the consumer = 1,000; Pg = price of good B = 10; W = wage rate = 20

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Are the directions of the changes in equilibrium price and quantity sensitive to the magnitudes of the changes in income and wage rate? Defend your answer. 

Qd = 1000 -30*P -0.05*Y + 1*PB Qs = 20 + 10*P -3*W Variable definitions: Qd = quantity demanded of good A; Qs = quantity supplied of good A; P= price of good A; Y = income of the consumer = 1,000; PB = price of good B = 10; W = wage rate = 20
Transcribed Image Text:Qd = 1000 -30*P -0.05*Y + 1*PB Qs = 20 + 10*P -3*W Variable definitions: Qd = quantity demanded of good A; Qs = quantity supplied of good A; P= price of good A; Y = income of the consumer = 1,000; PB = price of good B = 10; W = wage rate = 20
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