The demand and supply functions for two interdependent goods are given by Q D 1 = 400
Question:
The demand and supply functions for two interdependent goods are given by
QD1 = 400 − 5P1 − 3P2
QD2 = 300 − 2P1 − 3P2
QS1 = −60 + 3P1
QS2 = −100 + 2P2
(a) Show that the equilibrium prices satisfy
(b) Use Cramer’s rule to find the equilibrium price of good 1.
Transcribed Image Text:
460 3 2 5 400 P,
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
a 4005P3P603P 3002...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Mathematics questions
-
The demand and supply functions for two interdependent commodities are given by where Q Di , Q Si and P i denote the quantity demanded, quantity supplied and price of good i, respectively. Determine...
-
If the demand and supply functions for a product are p = 800 - 2q and p = 100 + 0.5q, respectively, find the tax per unit t that will maximize the tax revenue T. p is the price per unit in dollars...
-
If the demand and supply functions for a product are p = 2100 - 3q and p = 300 + 1.5q, respectively, find the tax per unit t that will maximize the tax revenue T. p is the price per unit in dollars...
-
With a global economy, the only way to achieve cost-effective control of greenhouse gases is to assure that every country imposes the same universal set of emissions standards. Discuss.
-
An Otto cycle has an efficiency of 70% and a maximum temperature of 3500F. What is the compression ratio of this cycle? Determine the heat transfer in and the net work of the cycle if the air enters...
-
In a science fiction novel two enemies, Bonzo and Ender are fighting in outer space. From stationary positions they push against each other. Bonzo flies off with a velocity of + 1.5 m/s, while Ender...
-
Assume that Midway Cycles bought and sold a line of mountain bikes during May as follows: Midway Cycles uses the perpetual inventory system. Requirements 1. Compute the cost of ending inventory under...
-
A popular product of Loring Glassworks is a hand-decorated vase. The companys standard cost system calls for 0.75 hours of direct labor per vase, at a standard wage rate of $8.25. During September,...
-
4. Assume that G and T are exogenous, and C is determined by the standard. consumption function, but that investment is now endogenous and responds to income: I = b + bY. Assume c + b < 1. (a)...
-
Liz Viera has opened Pizza and More, a wholesale grocery and pizza company. The following transactions occurred in March: Required 1. Journalize the transactions. 2. Record to the accounts receivable...
-
Use Cramers rule to solve the following sets of simultaneous equations: (a) 4x + 3y = 1 2x + 5y = 3 (b) 4x + 3y = 1 2x + 5y = 11 (c) 4x + 3y = 2 2x + 5y = 36
-
Consider the two-sector macroeconomic model Y = C + I* C = aY + b (a) Express this system in the form Ax = b and A and b are 2 2 and 2 1 matrices to be stated. (b) Use Cramers rule to solve this...
-
Different proteins are composed of different sequences of _________. A. Sugars; B. Lipids; C. Fats; D. Amino acids; E. Carbohydrates
-
What are the pros and cons of measuring and trending demodulated spectra?
-
What type of mounting for an accelerometer yields the highest frequency range transmissibility?
-
True or False: The larger the accelerometer crystal, the lower the maximum frequency range.
-
What is the most accepted input power required for an ICP accelerometer?
-
What is the most valuable commodity from a trending program that must be communicated to management of a given facility?
-
A motor delivers 500 hp to the shaft, which is tubular and has an outer diameter of 2 in. If it is rotating at 200 rad/s, determine its largest inner diameter to the nearest 1/8 in. if the allowable...
-
Frontland Advertising creates, plans, and handles advertising campaigns in a three-state area. Recently, Frontland had to replace an inexperienced office worker in charge of bookkeeping because of...
-
The following message was encoded with the matrix B shown below. Decode the message. 7 25 30 19 6 24 20 8 28 5 14 14 9 23 28 15 6 21 13 1 14 21 26 29 1 B = 1 0 1 1 1 1 1
-
The following message was encoded with the matrix B shown below. Decode the message. 7 25 30 19 6 24 20 8 28 5 14 14 9 23 28 15 6 21 13 1 14 21 26 29 1 B = 1 0 1 1 1 1 1
-
The following message was encoded with the matrix B shown below. Decode the message. 7 25 30 19 6 24 20 8 28 5 14 14 9 23 28 15 6 21 13 1 14 21 26 29 1 B = 1 0 1 1 1 1 1
-
Ana Perez is the plant manager of Travel Free's Indiana plant. The Camper and Trailer operating departments manufacture products, and have their own managers. The Office department, which Perez also...
-
Effective communication is an important part of project management. This makes it possible for the project to develop and advance in an efficient manner. It ensures all team members who are involved...
-
Dexter Industries purchased packaging equipment on January 8 for $462,200. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $38,200....
Study smarter with the SolutionInn App