What is the expected equilibrium price and quantity of bonds

Reference no: EM13213103

An economist has estimated that, near the point of equilibrium, the demand curve and supply curve for bonds can be estimated using the following equation B: Price= -2/5 quantity + 940 Equation 1 B: Price= quantity + 500 Equation 2 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: EM13213103

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