Suppose that the quantity of steel demanded in France is given by Qs = 100 - 2Ps

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Suppose that the quantity of steel demanded in France is given by Qs = 100 - 2Ps + 0.5Y + 0.2PA, where Qs is the quantity of steel demanded per year, Ps is the market price of steel, Y is real GDP in France, and PA is the market price of aluminum. In 2011, Ps = 10, Y = 40, and PA = 100. How much steel will be demanded in 2011? What is the price elasticity of demand, given market conditions in 2011?
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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