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(20 points) The market for a particular good can be described by the equations Qd=20-4P Qs=2+P-w Qs = Qd = Q Where Q and P
- (20 points) The market for a particular good can be described by the equations Qd=20-4P Qs=2+P-w
Qs = Qd = Q
Where Q and P are respectively the equilibrium quantity and price, W is the current wage of labor used for production.
- Use repeated substitution to solve for the equilibrium Q and P as a function of W.
- Based on 1), find the first derivative of function P(w).
- Discuss the impact of $1 increase in wage on price P.
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Macroeconomics
Authors: Charles I. Jones
4th Edition
393603767, 393603768, 9780393616125 , 978-0393603767
