This assignment further explores how demand and supply shocks effect the equilibrium price in a market. Imagine that the market for acoustic guitars is described by the following demand and supply curves: Qa=A-P Qs = B + SP Where A > 0, B < 0,8 > 0. Find the equilibrium price and quantity in the market. Form the inverse supply and demand functions and, Interpret the terms A and -B/8. Explain why the emergence of a market for guitars requires the following: A > -B/8 > 0.

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

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what about question g？

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How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

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what about question g？

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Follow-up Question

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

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Follow-up Question

what about question g？

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Answer 26

Follow-up Question

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

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How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

Answer 28

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Answer 29

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Answer 30

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

Answer 31

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

Answer 32

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what about question g？

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what about question g？

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what about question g？

Answer 42

what about question g？

Answer 43

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Answer 48

Follow-up Questions

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Follow-up Question

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

Solution

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Follow-up Question

what about question g？

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Answer 49

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Follow-up Question

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

Solution

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Follow-up Question

what about question g？

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Answer 50

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Answer 51

Follow-up Question

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

Solution

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Follow-up Question

what about question g？

Solution

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Answer 52

Follow-up Question

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

Solution

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SEE SOLUTION

Answer 53

Follow-up Question

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

Answer 54

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Answer 55

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Answer 56

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.

Answer 57

How would we go about part G? Concerning parameter B, if it is below or equal to 0, sellers would not enter the market, correct? How does this relate to the rare wood supply shock? Please walk me through part G. Thank you very much.