Answer to Question #132953 in Macroeconomics for Miyoba

Question

The respective elasticities of demand and supply for a product are -0.55 and 1 .Further,it is
observed that the price of this commodity is 80 whilst the prevailing quantity in the market is
950.
a)By adopting ad demand and supply concept of
Qd=a+bP
Qs=c+dP
Use the information provided to estimate the values of a,b,c and d.

Answer 1

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