Determine equilibrium price and quantity of e-books

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In the local market for e-books, the aggregate demand is given by the equation: Qebd = 2000 - 400 Peb + 0,5l + 150 phb

and the aggregate supply is given by the equation: Qebs = -516 + 300 Peb- 600w

Where, Qeb is quantity of e-books, Peb is the price of an e-book, I is household income, W is wage rate paid to e-book laborers, and Phb is the price of a hardbound book.

Assume I is N$2,300, W is N$10, and Phb is N$21.40.

Determine the equilibrium price and quantity of e-books in this local market.

Reference no: EM133062919

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