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The Demand Curve for Widgets Is Given by

question 108

Essay

The demand curve for Widgets is given by
QD = 5800 - 200p + 30pG
where QD is the quantity of widgets demanded,y is the per capita income and pG is the price of Gizmos.The supply of Widgets is given by:
QS = 250p - 1250
a.Solve for the equilibrium price and quantity of widgets in terms of the price of Gizmos.
b.Compute the comparative static derivatives for the changes in the equilibrium price and quantity of Widgets with respect to a change in the price of Gizmos.


Definitions:

Paralanguage

The nonverbal elements of communication used to convey emotion and modify meaning, such as tone of voice, loudness, and tempo.

Slowly

With low speed; not quickly or rapidly.

Uncertainty

The state of being unsure or having doubts.

Nonverbal Sensitivity

The ability to accurately encode (express) and decode (understand) nonverbal cues.

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