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  3. 2) the demand function for a good is ?? = ?(?, ?,

2) The demand function for a good is ?? = ?(?, ?, ?) = ?...

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Economics

2) The demand function for a good is ?? = ?(?, ?, ?) = ? − ??and its supply function is ?? = ?(?, ?, ?) = ? + ??, where a, b, c,and e are positive constants. (Keep in mind that sometimes we calla, 2 b, c, and e “parameters” and that they are “exogenous”variables. In contrast, p and Q are “endogenous” variables.) a)Solve for the equilibrium price ? ∗ = ? ∗ (?, ?, ?, ?) and quantity? ∗ = ? ∗ (?, ?, ?, ?). b) Using calculus, compute theeffect of an increase in parameter a on ? ∗ and ? ∗ . Draw ?? and?? and illustrate the just noted effects graphically.

I was able to solve part A. I got: P* =[(a-c)/(b+e)] and Q* = a - b[(a-c)/(b+e)]. I am just unsureabout part B.

Thank you,

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