Questions tagged [equilibrium-price]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
-1
votes
1answer
15 views

Finding Walras equilibrium price

Consider an exchange economy with three goods $(1,2,3)$ and two consumers (A,B). The consumers have the preferences $$ u^A (x_1,x_2,x_3) = x_1^\alpha x_2^\alpha x_3^{1-2\alpha}, \alpha \in (0,1/2) $$ $...
1
vote
0answers
31 views

Analytical approach to estimate equilibrium price for Real Estate Property

I am looking to calculate the equilibrium price, i.e an optimal price that I can set without affecting demand and maximize revenue. I've gathered historical data: occupancy rates, asking rents for ...
0
votes
1answer
33 views

Profit maximization, when $MC = P$, in a simple supply table and curve

Our economics school book states that the profits of a company are maximized when MC = P. However, I am having some trouble wrapping my head around that. For example, I have the following exercise: ...
1
vote
0answers
19 views

Time-dependent market-clearing equilibrium price

I'm working my way through Chiang and Wainwright's Fundamental Methods of Mathematical Economics (4th ed) while holed up at home. On p. 532, in exercise 16.4 2. (b), the authors ask you to find the ...