Question: The demand function is Q = 220 - 2p, and the supply function is Q = 20 + 3p - 20r, where r is the

The demand function is Q = 220 - 2p, and the supply function is Q = 20 + 3p - 20r, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r?

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The equilibrium price is that price where quantity demanded equals quantity supplied 220 2 p 20 3 ... View full answer

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