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2. Consider the following model of Supply and Demand. where P is the price of the good, Qd is quantity demanded and Q5 is quantity supplied. (i) What condition should b satisfy in order for the first equation to be a reasonable demand function? (ii) What condition should b and d satisfy in order for this system to have a unique equilibrium? (ii) Assuming a unique equilibrium exists express the system in matrix form and use matrix algebra to find the equilibrium values of Q and P (iv) Using calculus derive an expression for how the equilibrium price changes when the demand curve shifts.

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