Consider the market for wool described by the supply and demand equations in Problem 1.12. Suppose income
Question:
a) Using comparative statics analysis, find the impact of the change in income on the equilibrium price of wool.
b) Using comparative statics analysis, find the impact of the change in income on the equilibrium quantity of wool.
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a With we had and which implied an equilibrium price of 15 With we ...View the full answer
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