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The following equations show market demand and supply, respectively:
Qd = 10,000 - 1,000P
Qs = -2,000 + 1,000P
What is the equilibrium price and quantity in this market?
State what is its distribution under the null and why and explain the conditions under which you would reject H0
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Discuss the signs and magnitudes of the estimated coefficients and their comparisons to predicted or theoretical signs and magnitudes. What have we learned?
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