Please answer in 30 minutes.. Consider two equations describing therelationship between three variablesХ, Y1, аnd Yz.= a + bYj(1)X = c – dY2(2)where a, b, c, and d, are positive, knownconstant (numbers). The objective is to findvalues of X, Y1, and Y2 for which bothequations are satisfied and as well Y = Y,.What is the quantity supplied and demanded atP = 220? Excess supply or excess demand, whichone exists at this price and what is the size of it?What are the expected impacts on the variablesof the model?

Excess supply refers to a situation where the quantity supplied of a particular commodity is greater…

What is the quantity supplied and demanded at P = 220? Excess supply or excess demand, which one exists at this price and what is the size of it? What are the expected impacts on the variables of the model?

What is the quantity supplied and demanded at P = 220? Excess supply or excess demand, which one exists at this price and what is the size of it? What are the expected impacts on the variables of the model?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section1.A: Applying Graphs To Economics

Problem 2SQP

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kad has estimated the following demand relationship for its product over the last four years, using monthly observations: ln qt = 4.932- 1.238 ln pt + 1.524 ln yt-1 + 0.4865ln qt-1 (2.54) (1.38) (3.65) (2.87) r 2= 0.8738 where q = sales in units, p = price in rs., y is income in rs,000, and the numbers in brackets are t-statistics. a. interpret the above model. b. make a sales forecast if price is rs. 9, income last month was rs. 25,000 and sales last month were 2,981 units. c. make a sales forecast for the following month if there is no change in price or income. d. if price is increased by 5 per cent in general terms, estimate the effect on sales, stating any assumptions.
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