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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 - 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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