Question

the demand function for roses is given as: 0.- + bp + fp, and the supply function is given as: 0,c+ep, Where: (1) a, b, c, e, and fare constants (with a > 0, b <0,c>0, e > 0, and f> 0) and (2) Qd and Q, are quantity manded and supplied, respectively, with p the price of roses, and pe is the price of chocolates. Based on these fuations, write a formula for the equilibrium price of roses, which will depend upon a, b, c, e, f, and po. Using this formula, verify that an increase in the price of chocolates will increase the equilibrium price of roses. Of course, without specific values to the constants you cannot draw specific demand and supply curves, but do sketch and explain why an increase in the price of chocolates increases the equilibrium price of roses in this case.

Answer 1

tere b is negation tel nosos отьr - Kre = c-ep at kее - - е - не ГегаКР- 40 есе 2 7 e-, s o cé-cbtearefle-ek е - ь e- - - o so Thus Antinpe leads to an increase in Pleq puie)