Market transactions at the prevailing market price
What is the extra benefit consumers receive by being able to make market transactions at the prevailing market price? How much would they be willing to pay for the right to consume the amount demanded at the prevailing market price?
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Consider the following equations for demand and supply : D( pt ) = -2 pt + 7 S(pt -1 ) = 8pt -1 + 1 a) Find the equilibrium price . b) Is this a stable equilibrium? Why or why not? C) Suppose p0 = 0.599 . Find p1 , p2 , p3 and p4 . Graph them in a
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