In a market with perfect competition, two different goods are
produced.
The demand function for the respective goods is given by
π1 = 100 βπ1 + 2π2
π2 = 100 + π1 β π2.
If the supply functions are provided by
π1 = 10 + π1
π2 = 20 + π2,
how much of each product is then produced in equilibrium?
a. π1 = 120 and π2 = 180.
b. π1 = 180 and π2 = 145.
c. π1 = 100 and π2 = 100.
d. π1 = 200 and π2 = 120.
(right answer is b. but I need step by step to come to this
conclusion)
In a market with perfect competition, two different goods are produced. The demand function for the respective goods is
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