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Suppose there are only two goods - Food (F) and Shelter (S). The demand equations for these two goods depend on their prices, pF and
Suppose there are only two goods - Food (F) and Shelter (S). The demand equations for these two goods depend on their prices, pF and pS as follows: DF(pF,pS) = 10 - 3.7pF - 1.7pS DS(pF,pS) = 18 - 1.3pF - 3.7pS The supply curves depend only on their own prices: S(pF) = pF S(pS) = 8.6pS Determine the equilibrium price of shelter.
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