Question
a) Show that the equilibrium price for a linear one-commodity market model P = aQs+b (a, b > 0) P = -cQp +d (c,
a) Show that the equilibrium price for a linear one-commodity market model P = aQs+b (a, b > 0) P = -cQp +d (c, d > 0) ad+bc where d-b > 0 is given by P* a+c b) Find expressions for the multipliers OP* aP* aP* aP* ab dc' ad and deduce the direction of change in P* due to an increase in a, b, c, or d.
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a Pa Qstb cQpd Pb a dp 3D Arequilibrium Demand D Supply 3D Pb dp Qs 3D a 4pa 3D pC bC adpa pa at...
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An Introduction to the Mathematics of financial Derivatives
Authors: Salih N. Neftci
2nd Edition
978-0125153928, 9780080478647, 125153929, 978-0123846822
