To find the equilibrium price and quantity, we set Qs = Qd and solve for P:
cap Q raised to the * power equals a minus b open paren cap P raised to the * power close paren Mathematical Summary of Market Equilibrium
Y=YPy−(PxPy)Xcap Y equals the fraction with numerator cap Y and denominator cap P sub y end-fraction minus open paren the fraction with numerator cap P sub x and denominator cap P sub y end-fraction close paren cap X
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