The demand and supply functions for three interdependent commodities are QD1 = 15 - P1 + 2P2 + P3 QD2 = 9 + P1 - P2 - P3 QD3 = 8 + 2P1 - P2 - 4P3 QS1 = -7 + P1 QS2 = -4 + 4P2 QS3 = -5 + 2P3 where QDi, QSi and Pi denote the quantity demanded, quantity supplied and price of good i, respectively. Determine the equilibrium price and quantity for this three-commodity model.
The demand and supply functions for three interdependent commodities are QD1 = 15 - P1 + 2P2 + P3 QD2 = 9 + P1 - P2 - P3 QD3 = 8 + 2P1 - P2 - 4P3 QS1 = -7 + P1 QS2 = -4 + 4P2 QS3 = -5 + 2P3 where QDi, QSi and Pi denote the quantity demanded, quantity supplied and price of good i, respectively. Determine the equilibrium price and quantity for this three-commodity model.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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The demand and supply functions for three interdependent commodities are
QD1 = 15 - P1 + 2P2 + P3
QD2 = 9 + P1 - P2 - P3
QD3 = 8 + 2P1 - P2 - 4P3
QS1 = -7 + P1
QS2 = -4 + 4P2
QS3 = -5 + 2P3
where QDi, QSi and Pi denote the quantity demanded, quantity supplied and price of good
i, respectively. Determine the equilibrium price and quantity for this three-commodity
model.
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