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April 11th, 2011, 08:25 AM   #1
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parameters direct demand functions

I have the following inverse demand functions:

p1=d1-e1y1-fy2
p2=d2-e2y2-fy1

and the following corresponding direct demand functions:

y1=a1-b1p1+cp2
y2=a2-b2p2+cp1


Given these demand functions, I have to derive formulas for the parameters of the direct demand functions (ai,bi,c, for i=1,2))


Can someone please explain me how to do this. This problem really frustates me.

I know that the answer are ai=(d1e2-d2f)/(e1e2-f^2), bi=ej/(e1e2-f^2) and c=f/(e1e2-f^2) (where i is not equal to j)

PLEASE help me. I do not even know how to start
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