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suppose there are only two goods food and shelter. the demand equations for these two goods depend on their prices pf and ps follows :
suppose there are only two goods food and shelter. the demand equations for these two goods depend on their prices pf and ps follows :
Df(pf,ps)=10-2pf-ps
Ds(pf,ps)= 10-pf-2ps
The supply curves depend only on their own prices :
sf(pf) =pf
ss (ps) = 5ps
Determine the equilibrium price and quantity of these goods.
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