The demand and supply functions of two related goods are given by Qd1 = 300 – 50P1+ 20P2 Qs1 = -200 + 40P1 Qd2 = 700+40P1 – 40P2 Qs2 = -100 + 20P2 Determine the equilibrium prices and quantities for the two commodities using the substitution method.

The demand and supply functions of two related goods are given by Qd1 = 300 – 50P1+ 20P2 Qs1 = -200 + 40P1 Qd2 = 700+40P1 – 40P2 Qs2 = -100 + 20P2 Determine the equilibrium prices and quantities for the two commodities using the substitution method.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.7P

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The demand and supply functions of two related goods are given by
Qd1 = 300 – 50P1 + 20P2
Qs1 = -200 + 40P1
Qd2 = 700+40P1 – 40P2
Qs2 = -100 + 20P2
Determine the equilibrium prices and quantities for the two commodities
using the substitution method.

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