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Show that the equilibrium price for a linear one-commodity market model P = aQS + b (a > 0, b > 0) P = cQD
Show that the equilibrium price for a linear one-commodity market model P = aQS + b (a > 0, b > 0) P = cQD + d (c > 0, d > 0) where d - b > 0, is given by P 5 ad 1 bc a 1 c Find expressions for the multipliers P a P b P c P d , , , and deduce the direction of change in P due to an increase in a, b, c or d
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