Consider the following Microeconomic market model, where A is the level of technology. Q=D(P,Y) [DP<0 ; DY>0] Q=S(P,T) [SP<0 ; ST>0] Analyse the comparative statics of the model to find the effect of the level of technology T and Income Y on the equilibrium quantity and price simultaneously.

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 23EQ: 23. Consider a simple economy with just two industries: farming and manufacturing. Farming consumes...
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Consider the following Microeconomic market model, where A is the level of technology.
 
Q=D(P,Y) [DP<0 ; DY>0]
 
Q=S(P,T) [SP<0 ; ST>0]
 
 
 
Analyse the comparative statics of the model to find the effect of the level of technology T and Income Y on the equilibrium quantity and price simultaneously.
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