What is the expected equilibrium price and quantity of bonds

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Reference no: EM131825957

An economist has estimated that, near the point of equilibrium, the demand curve and supply curve for bonds can be estimated using the following equations:

Demand: P =-(2/7)Q + 1000

Supply: P = (1/7)Q + 700

a. What is the expected equilibrium price and quantity of bonds in this market?

b. Given your answer to part (a), which is the expected interest rate in this market?

Reference no: EM131825957

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