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8. The dealer's demand and supply functions are: Qd = 7 - 1.5 Sy Is = 2 + 2.5 Sa where la ands are the

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8. The dealer's demand and supply functions are: Qd = 7 - 1.5 Sy Is = 2 + 2.5 Sa where la ands are the quantities supplied and demanded by dealers. The customer's demand and supply functions are: Qd = 10 - 2 Sa Is = 1 + 2 Sb Calculate the bid-offer spread. (10 marks)

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