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Q.2 Consider the following demand and supply model Q' - 4.- 4, (P +1) +1,m O' = -0, +6,(P+s) Where m is income/wealth, t is
Q.2 Consider the following demand and supply model Q' - 4.- 4, (P +1) +1,m O' = -0, +6,(P+s) Where m is income/wealth, t is the tax rate and s is rate of subsidy which are exogenous. a. Find equilibrium price and quantity b. Find government total tax collection r c. Assuming @" -2" -2 write the above model in matrix form d. Using part c., find dO/dt, dp/ds while using Cramer's rule
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