Question
1.Consider the market for butter. The demand curve is given by Qd = 300 2P + 4I, where I is the average income. The supply
1.Consider the market for butter. The demand curve is given by Qd = 300 2P + 4I, where I is the average income. The supply curve is Qs =3P 25PM 25, where PM is the price of milk.
A.If the average income in Cambridge is I = 25 and the price of milk is PM = 1, what is the market clearing price and quantity in Cambridge?
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International Economics
Authors: Robert C. Feenstra, Alan M. Taylor
3rd edition
978-1429278515, 142927851X, 978-1319029517, 1319029515, 978-1429278447
