Question
Using the demand function, Q = 14 - p- 5ps + 0.1Y, and the supply function, Q = 20 + 3p - 6pc, for
Using the demand function, Q = 14 - p- 5ps + 0.1Y, and the supply function, Q = 20 + 3p - 6pc, for bread, determine the equilibrium price and quantity of bread if Y = $60,000 (Y is measured in thousands), ps = $2, and pc = $3. Draw the demand and supply curves and illustrate this equilibrium in a diagram.
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
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