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Question
Suppose the quantity demanded for a security isBD= 100 − 1b,
and the quantity supplied of the security is
BS= 50 + 1b,
where bis the price of the security in dollars.
a. Calculate the equilibrium price and quantity of the security.
b. Suppose demand increases by 50, so that BD= 150 − 1b. Now, calculate the new equilibrium price and quantity of the security.
Answer
This answer is hidden. It contains 341 characters.
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