Essay
Suppose the quantity demanded for a security is
BD = 100 ? 0.1b,
and the quantity supplied of the security is
BS = 50 + 0.1b,
where b is the price of the security in dollars.
a.Calculate the equilibrium price and quantity of the security.
b.Suppose demand increases by 50, so that BD = 150 ? 0.1b.Now, calculate the new equilibrium price and quantity of the security.
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