Computer Science Consider the demand and supply system p = a d +b d q d +u d p = a s +b s q s +u s with the equilibrium condition q d = q s = q . The parameters b d and b s are −2 and 1.5,...

Consider the demand and supply system

p = a_d +b_dq_d +u_d

p = a_s +b_sq_s +u_s

with the equilibrium conditionq_d = q_s = q. The parametersb_d
 andb_s
 are −2 and 1.5, respectively. Find the parametersa_d
 anda_s
 are such thatq = 5 andp = 10.

Throughout this question useN = 100, and set the random seed to 14022022. The variableu_d
 has a standard deviation of 3. All randomly generated variables have a mean of zero and are normally distributed unless something else is specified. All Monte Carlo studies should be done with 10,000 repetitions.

Part a. Illustrate the supply and demand curves in a graph, together with a sample of simulated price and quantity data. Provide an additional graph where you have included the OLS estimated line of demand equation above. Are your estimates close to the true values ofa_d
 andb_d
 ?

Solve the question inPython language on Jupyter notebook.