The demand and supply functions of a two-commodity market model are as followQd, = 36 - 6P, + 2P2Qd2 = 24 + 2P1 – 4P2%3D%3DQs, = -4 + 8P1Qs2= -4 + 6P2Find the equilibrium price and quantity for each market.

Answer: Let us first find the equilibrium in market 1: At…

The demand and supply functions of a two-commodity market model are as follo Qd, = 36 - 6P, + 2P2 Qd2 = 24 + 2P,- 4P2 Qs1 = -4 + 8P1 Qs2 = -4 + 6P2 Find the equilibrium price and quantity for each market.

The demand and supply functions of a two-commodity market model are as follo Qd, = 36 - 6P, + 2P2 Qd2 = 24 + 2P,- 4P2 Qs1 = -4 + 8P1 Qs2 = -4 + 6P2 Find the equilibrium price and quantity for each market.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The demand and supply functions of a two-commodity market model are as follow
Qd, = 36 - 6P, + 2P2
Qd2 = 24 + 2P1 – 4P2
%3D
%3D
Qs, = -4 + 8P1
Qs2
= -4 + 6P2
Find the equilibrium price and quantity for each market.

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