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3. The demand function is Qa = 220-2p, and the supply function is Qs = 20+3p -20r, where r is the rental cost of capital.

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3. The demand function is Qa = 220-2p, and the supply function is Qs = 20+3p -20r, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? [Hint: See solved Problem 2.1 from the text.] (This is exercise 4.4 from your text)

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