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It should be answered in Python. 2. Assume a model of supply and demand where supply is given by: Qs = pa + P +1
It should be answered in Python.
2. Assume a model of supply and demand where supply is given by: Qs = pa + P +1 - and demand is given by: 1 Qd - 2 0.1P2 + P (a) Draw a sample of 1000 values for a assuming that a is a random variable which is uniformly distributed within interval [0.1, 3.0]. (b) Solve the equilibrium price for each a by numerically finding the root of excess demand function. (c) Plot a histogram of prices using 25 bins. 2. Assume a model of supply and demand where supply is given by: Qs = pa + P +1 - and demand is given by: 1 Qd - 2 0.1P2 + P (a) Draw a sample of 1000 values for a assuming that a is a random variable which is uniformly distributed within interval [0.1, 3.0]. (b) Solve the equilibrium price for each a by numerically finding the root of excess demand function. (c) Plot a histogram of prices using 25 binsStep by Step Solution
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