Economics equation

Jan 2017
18
0
Britain
Came across this economics equation in my studies:

P = A+q X P+I

Which was then rendered in terms of P as:

P = A+I/ 1-q

can anyone help me work out how the got from one to the other?

Thanks
 
May 2016
1,310
551
USA
Came across this economics equation in my studies:

P = A+q X P+I

Which was then rendered in terms of P as:

P = A+I/ 1-q

can anyone help me work out how the got from one to the other?

Thanks
$p = a + qp + i \implies$

$p = a + pq + i \implies$

$p - pq = a + i \implies$

$p(1 - q) = a + i \implies$

$p = \dfrac{a + i}{1 - q}$
 
Jan 2017
18
0
Britain
Thanks for clear explanation! Very helpful!
 
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