Qa=99-2Pc + 1Psb - 2Pcm +0.19 Q₁ =30+Pc-1P-0.2P-0.4Pr

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter20: The Problem Of Adverse Selection Moral Hazard
Section: Chapter Questions
Problem 3MC
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The demand and supply functions for coal are given as: (In pictures)

 

 

what is the inverse demand function?
what is the inverse supply function?
Pc price of coal
Psb price of substitute to coal (natural gas) =1
Y income 200
Pcm = a complement to coal = 10
Pk = price of capital = 31
Pl= price of labor = 30
Pnr price of other natural resources used in production of coal = 10
Transcribed Image Text:Pc price of coal Psb price of substitute to coal (natural gas) =1 Y income 200 Pcm = a complement to coal = 10 Pk = price of capital = 31 Pl= price of labor = 30 Pnr price of other natural resources used in production of coal = 10
la=99-2Pc + 1Psb-2Pcm +0.1Y
Qs = 30 + Pc-1P-0.2P-0.4Pr
Transcribed Image Text:la=99-2Pc + 1Psb-2Pcm +0.1Y Qs = 30 + Pc-1P-0.2P-0.4Pr
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