Question

5. if (b+ d) 0 in the linear market model, what can you conclude regarding the posi- tions of the demand and supply curves in Fig. 3.1 What can you conclude, then, regarding the equilibrium solution?

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#2

Find the equilibrium solution for each of the following models.

A) Qd=Qs

Qd=3-P^2

Qs=6P-4

B) Qd=Qs

Qd=8-P^2

Qs=P^2-2

Plzzzzzzzzz answer all questions !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Answer 1

If b + d = 0 the d = 9-b) which implies that the demand and supply curves would have the same slope. This means then the two curves would be parallel, with no equilibrium intersection point. Given Q_d = 3 - p^2 Q_s = 6P - 4 Q_d = Q_s 3 - P^2 = 6P - 4 P^2 + 6P - 4 - 3 = 0 P^2 + 65P - 7 = 0 P^2 + 7P - P - 7 = 0 P (P + 7) - 1 (P + 7) = 0 (P - 1) (P + 7) = 0 P = -7 or P = 1 At equilibrium, P = -7 or 1 \r\n Given Q_d = 8 - P^2 Q_s = P^2 - 2 Q_d = Q_s 8 - P^2 = P^2 - 2 2P^2 - 2 - 8 = 0 2P^2 - 10 = 0 P^2 - 5 = 0 P^2 = 5 = > P = squareroot 5 = plusminus 2.23

Answer 2

Qd=Qs 3-p^2=6p-4 P^2+6p-7=0 P^2+7p-p-7=0 P(p+7)-1(p+7)=0 (P-1)(p+7)=0 P=1 , p=-7

Answer 3

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Answer 4

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Answer 5

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