Three products compete in a market and their demand and supply functions are qd1 = 44-2p1+p2+p3 qs1 = -10+3p1 qd2 = 25+ p1 –p2 +3p3 qs2 = -15+5p2 qd3 = 40 +2p1+p2 -3p3 qs3 = -18+2p3 where p1, p2, and p3 are the prices. Determine the prices and quantities which result in equilibrium in each market using Cramer’s rule.

Three products compete in a market and their demand and supply functions are qd1 = 44-2p1+p2+p3 qs1 = -10+3p1 qd2 = 25+ p1 –p2 +3p3 qs2 = -15+5p2 qd3 = 40 +2p1+p2 -3p3 qs3 = -18+2p3 where p1, p2, and p3 are the prices. Determine the prices and quantities which result in equilibrium in each market using Cramer’s rule.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 1E

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