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Assume that good 1 and good 2 are related in consumption, with the following demand curves: 1 = 26 - 3.51 + 2 & 2
Assume that good 1 and good 2 are related in consumption, with the following demand curves: 1 = 26 - 3.51 + 2 & 2 = 52 - 1.752 + 1 And that the supply of each good depends only on the products own price, as follows: 1 = 11 + 1.51 & 2 = 7 + 0.252 Solve for the competitive equilibrium outcome values for 1,2, 1,& 2.
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