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Let the price of meat be Pm, the price of wool be pw, the price of domestic sheep be ps

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Let the price of meat be Pm, the price of wool be pw, the price of domestic sheep be ps. Demand for meat is Dm (Pm) = Am – Pm, where Am > 0. Demand for wool is Dw (Pw) = Aw - Pw, where Aw > 0. Supply of domestic sheep is S. (ps) = Ps. Supply of wild sheep is exogenous and equal to n. Each domestic sheep gives one unit of meat and one unit of wool. Each wild sheep gives one unit of meat, but no wool. Determine whether each of the equilibrium prices Pm, Pw and Ps goes up, down, or remains unchanged if the supply of wild sheep goes up? Dm (Pm) = S, (Ps) +n Hint: Write down a system Dw (Pw) = Ss (Ps) and solve for Pm, Pw, Ps in terms of n Pm + Pw = Ps and other parameters.