1. What are the equilibrium prices of gold and silver?
2. What if a new discovery of gold doubles the quantity supplied to 150? How will this discovery affect the prices of gold and silver?

Suppose gold (G) and silver (8) are substitutes for each other because both serve as hedges against ination. Suppose also that the supplies of both are xed in the short run (06 = 90 and GS = 300) and that the demands for gold and silver are given by the following equations: PG = 960 - QG + 0.50PS and P8 = 600 - 08 + 0.50PG. What the the equilibrium prices of gold and silver? The equilibrium price of gold is $D and the equlibrium price of siliver is $D. (Enter your responses rounded to two decimal places.)