Question
Suppose that the demand for sugar packets is given by Q1=10-2P1+P2;andthe demand forStaviapackets, a sugar substitute is Q2=10 - 2P2 + P1with P1 being the
Suppose that the demand for sugar packets is given by Q1=10-2P1+P2;andthe demand forStaviapackets, a sugar substitute is Q2=10 - 2P2 + P1with P1 being the price of a sugar packetand P2 the price of aStaviapacket.
If the baker has only 5 packets each of sugar andstavia,
a)solve for the equilibrium P1, P2.
b)Explain why this is a general equilibrium problem.
Hint: treat baker's collection as supply.
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World Economic And Social Survey 2012 In Search Of New Development Finance
Authors: United Nations Department Of Economic And Social Affairs
1st Edition
9210555112, 9789210555111
