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Assume that the demand for apples is characterized by the linear equation Q); = 6 Pa Pb, where P,I is the price of apples and

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Assume that the demand for apples is characterized by the linear equation Q\"); = 6 Pa Pb, where P,I is the price of apples and Pb is the price of pears. Assume that the supply for apples is characterized by the linear equation Q; = P3. 1. [5 points] Assume thatfor some reasonthe price of pears is equal to 2, that is, Pb = 2. Write down the S'stem of linear equations that characterizes the equilibrium in the market for apples and solve for the equilibrium price, Pg, and the equilibrium quantity, Q3. 2. [10 points] Assume now that the demand for pears is given by Q?) = 4 Pa Pb. Moreover, let the supply of pears be given by (22% = Pb. Write down the system of linear equations that characterizes simultaneously the equilibrium in the market for apples and for pears, and solve for the equilibrium prices, Pg, PJ, and the equilibrium quantities, Q3, Q3

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