Starting with the following model:
Q_d1-Q_s1=0
Q_d1=a_0+a_1 P_1+a_2 P_2
Q_s1=b_0+b_1 P_1+b_2 P_2 (1)
Q_d2-Q_s2=0
Q_d2=α_0+α_1 P_1+α_2 P_2
Q_s2=β_0+β_1 P_1+β_2 P_2
We worked out the step-by-step solution of model 1, we found the following results:
P_1^*=(c_2 γ_0-c_0 γ_2)/(c_1 γ_2-c_2 γ_1 ) ---------- (1.1)
P_2^*=(c_0 γ_1-c_1 γ_0)/(c_1 γ_2-c_2 γ_1 ) ---------- (1.2)
Work out the step-by-step solution to find Q_i^*, where (i=1,2).
- i know to start this problem I would have to plug in P_1 and P_2 into Q_d1 or Q_s1 but I don't know how to solve it from there