Assume a demand equation:

Upper Q Subscript d Baseline equals 9 minus 0.1 p minus p Subscript c Baseline plus 0.01 p Subscript s Baseline plus 0.0001 Upper YQd = 9 − 0.1p − pc + 0.01ps + 0.0001Y

and a supply equation:

Upper Q Subscript s Baseline equals 0.1 p minus 0.02 p Subscript i Baseline plus 0.01 Upper N plus 0.01 Upper T minus 0.1 wQs = 0.1p − 0.02pi + 0.01N + 0.01T − 0.1w

where

p = price of the good

Q = quantity in thousands of units

p Subscript c Baseline equalspc=price

of a complement = $3
p Subscript i Baseline equalspi=

price of an input = $450
p Subscript sps=

price of a substitute = $200
N = number of firms = 700

Y = consumer income =
$20 comma 00020,000

T = index of technology = 300

w = wage rate =
$1010

If the price is

$4545,

there will be an

excess demand

excess demand

excess supply

of

nothing

thousand units.