/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} 23E Consider a two-commodity market.... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 1: 23E (page 6)

Consider a two-commodity market. When the unit prices of the products are P1 and P2, the quantities demanded, D1 and D2, and the quantities supplied, S1 and S2 are given by

D1=70-2P1+P2,D2=105+P1-P2,S1=-14+3P1S2=-7+2P2

  1. What is the relationship between the two commodities? Do they compete as, do Volvos and BMWs, or do they complement one another, as do shirts and ties?
  2. Find the equillibrium prices (i.e., the prices for which supply equal demand), for both products.

Short Answer

Expert verified

The relationships between the two comodities are competitive.

Step by step solution

01

(a)

Considering P1鈮�P2

So, taking arbitary prices and

Now, on substituting these values in the given linear equations, we get,

D1=70-2P1+P2=70-280+70=70-160+70=-20

And

data-custom-editor="chemistry" D2=105+P1-P2=105+80-70=115

This shows data-custom-editor="chemistry" D1>D2

But if the price P1 is fixed and the price P2 is gradually increasing, then the value of D1will start increasing and D2 will start decraesing and if P2 is gradually decreasing, then the value of D1 will start decreasing and D2 will start increasing.

Based on this, we can conclude that the two commodity markets are competing.

02

Final answer

The relationships between the two comodities are competitive.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Question:A lower triangular 3x3 matrix has rank 3 if (and only if) the product of its diagonal entries is nonzero.

If the rank of a 5 脳 3 matrix A is 3, what is rref(A)?

Question:A linear system of the formAx鈫�=0 is called homogeneous. Justify the following facts:

a.All homogeneous systems are consistent.

b.A homogeneous system with fewer equations than unknowns has infinitely many solutions.

c.Ifx1鈫�andx2鈫� are solutions of the homogeneous systemAx鈫�=0, thenx1鈫�+x2鈫� is a solution as well.

d.Ifx鈫� is a solution of the homogeneous systemAx鈫�=0 andkis an arbitrary constant, thenkx鈫� is a solution as well.

Consider a solutionx1鈫�of the linear systemAx鈫�=b鈫�. Justify the facts stated in parts (a) and (b):

a. Ifx鈫�his a solution of the systemAx鈫�=0鈫�, thenx1鈫�+xh鈫� is a solution of the systemA=x鈫�=b鈫�.

b. Ifx2鈫�is another solution of the systemAx鈫�=b鈫�, thenx1鈫�+xh鈫�is a solution of the system Ax鈫�+0鈫�.

c. Now suppose A is a2脳2matrix. A solution vectorx1鈫�of the systemAx鈫�+b鈫�is shown in the accompanying figure. We are told that the solutions of the systemAx鈫�=0鈫�form the line shown in the sketch. Draw the line consisting of all solutions of the systemAx鈫�=b鈫�.

If you are puzzled by the generality of this problem, think about an example first:

A=(1鈥呪赌呪赌呪赌�23鈥呪赌呪赌呪赌�6),b鈫�=[39]andx1鈫�=[11]

LetS(t) be the length of the tthday of the year2013 in Mumbai (formerly known as Bombay), India (measured in hours, from sunrise to sunset). We are given the following values ofS(t) :


[tS(t)4711.5741227312]

For exampleS(47)=11.5, means that the timefrom sunrise to sunset on February16is11hours and30minutes. For locations close to the equator, the functionS(t) is well approximated by a trigonometric functionof the form

S(t)=a+bcos(2蟺t365)+csin(2蟺t365)

(The period is 365 days, or 1 year.) Find this approximationfor Mumbai, and graph your solution. Accordingto this model, how long is the longest day of the year inMumbai?
See all solutions

Recommended explanations on Math Textbooks

Decision Maths

Read Explanation

Logic and Functions

Read Explanation

Probability and Statistics

Read Explanation

Pure Maths

Read Explanation

Calculus

Read Explanation

Mechanics Maths

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.