The demand and supply functions for two interdependent goods are given by Q D 1 = 400
Question:
The demand and supply functions for two interdependent goods are given by
QD1 = 400 − 5P1 − 3P2
QD2 = 300 − 2P1 − 3P2
QS1 = −60 + 3P1
QS2 = −100 + 2P2
(a) Show that the equilibrium prices satisfy
(b) Use Cramer’s rule to find the equilibrium price of good 1.
Transcribed Image Text:
460 3 2 5 400 P,
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