Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 3 - Appendix - Appendix Problems - Page 74: 1a

Answer

Refer to table

Work Step by Step

At the equilibrium of D2 and S2, the equilibrium quantity is 8000, and thus the price of the column would be 3.00 dollars. Since the equilibrium of D1 and S1 is 7000, the third row's quantities are 7000, given that it is congruent with the increasing D1 and decreasing S1 values. Since the equilibrium of D1 and S2 is 8000, the fourth row's quantities are 8000, and the price is thus 1.00 dollar.
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