Question: Suppose that price and quantity are determined by the intersection of the linear demand and supply curves Demand : Q a0 a1P a2Y e1

Suppose that price and quantity are determined by the intersection of the linear demand and supply curves Demand : Q Æ a0 Åa1P Åa2Y Åe1 Supply : Q Æ b0 Åb1P Åb2W Åe2 where income (Y ) and wage (W) are determined outside the market. In this model are the parameters identified?

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