Re: GE ques

Posted by duck on Mar 18, 2011; 9:04am
URL: http://discussion-forum.276.s1.nabble.com/GE-ques-tp6035151p6183848.html

Hello kiran,

tht slope also depends upon the value of "a"
In this  case, the slpoe is  ay/ (1-a)x


so the equilibrium price ratio will actually depend upon the value of a..
and hence, the market clearing price ratio, px/py= a/1-a