Given Qd = a bP2 Qs = -c + dP (a, b > 0) (c,...

 

Transcribed Image Text:

Given Qd = a – bP2 Qs = -c + dP (a, b > 0) (c, d > 0) What is the meaning of the given restrictions? ii) i) Why the equations above are called behavioral equations? What form or version of this partial market model presented and justify? iii) iv) To make the model meaningful in the economics sense, what assumption should be placed on the value for both Q and P? v) Find the value of endogenous variables using both substitution and elimination techniques. vi) Explain why matrix approach is not applicable here. vii) Illustrate your finding in (v) above using an appropriate diagram. Given Qd = a – bP2 Qs = -c + dP (a, b > 0) (c, d > 0) What is the meaning of the given restrictions? ii) i) Why the equations above are called behavioral equations? What form or version of this partial market model presented and justify? iii) iv) To make the model meaningful in the economics sense, what assumption should be placed on the value for both Q and P? v) Find the value of endogenous variables using both substitution and elimination techniques. vi) Explain why matrix approach is not applicable here. vii) Illustrate your finding in (v) above using an appropriate diagram.

Answer rating: 100% (QA)

I The meaning of a 0 implies positive quantity is always demanded And b 0 implies quantity demanded is decreasing in prices The implication d 0 states ... View the full answer