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ECO402 Assignmnet 2 Solution Spring 2012

Solution: Part A Solution of question(a): Domestic industry for MP3 players is in equilibrium where quantity demanded equals quantity supplied, i.e. Qd=QS. By equating both equations, we get; 1900 – 7P = 1300 + 17P 17P + 7P = 1900 – 1300 24P = 600 P = 600/24 P = 25 Solution of question(b): At price 20, quantity of MP3 ... Read More »