Question: Assume a demand equation: Q = 9 - 0.1p - Pc + 0.01ps + 0.0001Y and a supply equation: Qs = 0.1p - 0.02p; +

Assume a demand equation: Q = 9 - 0.1p - Pc + 0.01ps + 0.0001Y and a supply equation: Qs = 0.1p - 0.02p; + 0.01N + 0.01T - 0.1w where p = price of the good Q = quantity in thousands of units Pc = price of a complement = $3 pi = price of an input = $450 Ps = price of a substitute = $200 N = number of firms = 700 Y = consumer income = $20,000 T = index of technology = 300 w = wage rate = $10 If the price is $40, there will be an of thousand units. excess demand excess supply K

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