Let the demand and supply function for a commodity be Qa = D(p, Y) Dp <0, Dy> 0 Sp>0, Sw<0 Qs = S(p, w) where p is the price, Y in exogenous income, and w is the exogenous wage rate. a. Find dp and using the implicit-function theorem. dy b. Find d and dw dp by totally differentiating the equilibrium condition. dw
Let the demand and supply function for a commodity be Qa = D(p, Y) Dp <0, Dy> 0 Sp>0, Sw<0 Qs = S(p, w) where p is the price, Y in exogenous income, and w is the exogenous wage rate. a. Find dp and using the implicit-function theorem. dy b. Find d and dw dp by totally differentiating the equilibrium condition. dw
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Could you explain again how you got part a? I don't understand what RHS is nor what the answer is for the partial derivative for price with respect to wage
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