2. Given the market model, Qd = ls la = a - bP. (a, b > 0) Qs =-c+ P (c,d > 0) (a) Find the equilibrium price and quanti

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2 Given The Market Model Qd Ls La A Bp A B 0 Qs C P C D 0 A Find The Equilibrium Price And Quanti 1 (107.35 KiB) Viewed 57 times

2. Given the market model, Qd = ls la = a - bP. (a, b > 0) Qs =-c+ P (c,d > 0) (a) Find the equilibrium price and quantity. Show these using graph.(4.5) (d) What restriction do we need for the equilibrium quantity to be positive? (2) (c) If b + d = 0 in the linear market model, does equilibrium solution exist? (3) (d) If b + d = 0, what conclusion about the equilibrium could be done regarding the position of the demand and supply curve? (3) DIDUTS (and whose respective prices are BDT