Suppose products A and B have demand and supply equations that are related to each other. Ifq Subscript Upper AqAandq Subscript Upper BqBare the quantities produced and sold of A and B, respectively, andp Subscript Upper ApAandp Subscript Upper BpBare their respective prices, the table below shows the demand equations and the supply equations. Eliminateq Subscript Upper AqAandq Subscript Upper BqBto get the equilibrium prices. demand equationssupply equationsq Subscript Upper AqAequals=33minus−p Subscript Upper ApAplus+p Subscript Upper BpBq Subscript Upper AqAequals=minus−77plus+66p Subscript Upper ApAminus−22p Subscript Upper BpBq Subscript Upper BqBequals=2222plus+p Subscript Upper ApAminus−p Subscript Upper BpBq Subscript Upper BqBequals=minus−33minus−22p Subscript Upper ApAplus+66p Subscript Upper BpB Question content area bottomPart 1The prices arep Subscript Upper ApAequals=$ enter your response hereandp Subscript Upper BpBequals=$ enter your response here.(Round to the nearest cent as needed.)

Answer:To find the equilibrium prices, we need to solve the system of equations formed by setting…

Answered: Suppose products A and B have demand…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

Related questions

Question

Suppose products A and B have demand and supply equations that are related to each other. If

q Subscript Upper AqA

and

q Subscript Upper BqB

are the quantities produced and sold of A and B, respectively, and

p Subscript Upper ApA

and

p Subscript Upper BpB

are their respective prices, the table below shows the demand equations and the supply equations. Eliminate

q Subscript Upper AqA

and

q Subscript Upper BqB

to get the equilibrium prices.

demand equations	supply equations
q Subscript Upper AqA	equals=33minus−p Subscript Upper ApAplus+p Subscript Upper BpB	q Subscript Upper AqA	equals=minus−77plus+66p Subscript Upper ApAminus−22p Subscript Upper BpB
q Subscript Upper BqB	equals=2222plus+p Subscript Upper ApAminus−p Subscript Upper BpB	q Subscript Upper BqB	equals=minus−33minus−22p Subscript Upper ApAplus+66p Subscript Upper BpB