It follows that the equilibrium price ( Pe) = _________. In the context of the s

Question

It follows that the equilibrium price ( Pe) = _________. In the context of the supply and demand model, the two variables (Qd and Qs) are referred to as ____________ variables (endogenous; exogenous). Explain your answer. The numerical value for the slope of the demand curve is ____________ and that for the slope of the supply curve is _____________ [ Hint : When the supply and the demand curve are graphed, price (P) is placed on the vertical axis and quantity (Q) is placed on the horizontal axis. Therefore, the slope (P/Q) is just the reciprocal (inverse) of the price coefficient].

Explanation / Answer

You have not given full details of data or diagram to calculate Pe or slopes of demand and supply curve . They can't be computed by anybody till you present all information.

So far as the two variables are concerned they are endogenous. This is because they are determined by model itself. E. G higher price led to higher supply and lower demand

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