There is a market of a homogeneous product with exogenously determined demand function: yd (p) cp +d,

There is a market of a homogeneous product with exogenously determined

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demand function: yd (p) cp +d, c, d >0. = -apa + b, a, b > 0 and supply function: ys (p) = 1. For a product price, the demand and the supply levels determine intervals of values resulting from analytical forms of the demand and supply functions. 2. Draw graphs of both functions in space R2 (in one figure). Determine by what values of parameters b, d > 0 there exists the equilibrium price and indicate this price in the figure, when: (a) (0; 1), (b) a = 1, (c) a > 1. 3. Determine the equilibrium price. 4. Determine elasticities of the equilibrium price with regard to parameters of the supply and the demand functions that determine this price and give their economic interpretation.