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3. Given Qd, = a-bP, +cPy Qs, = -dteP,-gN Equilibrium Qd,=Qs, or Q Restriction: a, b, c, d, e, g>0 x and y are goods.
3. Given Qd, = a-bP, +cPy Qs, = -dteP,-gN Equilibrium Qd,=Qs, or Q Restriction: a, b, c, d, e, g>0 x and y are goods. Px is the price of x and Py is the price of y. N is the price of inputs for production of x Solve the equilibrium price and quantity using any method. 12 pts. Find the ff. comparative statics and determine the signs. oQ* / Py Are goods x and y substitutes or complements? Explain in one or two sentences. oQ* / ON > or
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