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Open Word and answer the following questions. Save the document and print it when you are done.

1. Use the scroll bar in cell C7 of the EquilibriumSolution sheet to set the intercept of the inverse demand curve to 375. Use Excel's Solver to find the equilibrium solution. Take a picture of the answer and paste it in your Word document.

2. Solve the equilibrium model with d0 = 375 via analytical methods. Show your work, using Word's Equation Editor as needed.

3. Because the intercept increased compared with the initial values of the parameters, we know there has been an increase in demand. How has the market responded to this shock? Is the market's response reasonable?

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Computer Engineering, Engineering

Category:- Computer Engineering
Reference No.:- M92169335

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