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Solve the model for both equilibrium prices and both equilibrium quantities. Model: d1 = 10 2 1 + 2 (1) s1 = 2 + 3

Solve the model for both equilibrium prices and both

equilibrium quantities.

Model:

d1 = 10 21 + 2 (1)

s1 = 2 + 31 (2)

d1 s1 = 0 (3)

d2 = 15 + 1 2 (4)

s2 = 1 + 22 (5)

d2 s2 = 0 (6)

1. Which equations in the model are equilibrium conditions? Behavioural

equations?

2. How many endogenous variables are there in the model?

3. Solve the model.

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