Ask a New Question
Search
Questions and answers by
kiru
Questions (1)
The demand functions of the 3 commodities: A, B and C are given as QdA = 20 - 3PA + PB + pc, QdB = 30 + PA - 5PB and QdC = 15 +
2 answers
355 views
Answers (1)
For commodity A: QdA = QsA 20 - 3PA + PB + PC = 9PA 12PA = PB + PC + 20 PA = (PB + PC + 20)/12 For commodity B: QdB = QsB 30 + PA - 5PB = 30PB - 3 PA + 5PB = 33 PA = 33 - 5PB For commodity C: QdC = QsC 15 + PA = 3PC - 1 PA = 3PC - 16 Now we can substitute
