1. Assume equations 1 and 2 below were estimated from the data gathered that will represent the demand and supply functions respectively of an individual buyer and seller respectively for product X. Eq. 1 Eq. 2 Qd. = 65,000 – 11.25P, + 15PY- 3.751 + 7.5A Qs. = 7,500 + 14.25P. – 15P.– 3.75C where Pr- price of product X; Py - price of product Y; I- average consumer's income; A – advertising expenditure; Pz- price of product 2; and C– cost of production. Use the following additional information: the price of a related product, Y, is P41.25; the average consumer's income is P12,000; advertising expenditure is P2,500; the price of product Z is P90; and the cost of production is P1,200. There are 30 identical buyers and 50 identical sellers in the market for product X. A. What is the market price of product Xx? Round-up to two decimals.

1. Assume equations 1 and 2 below were estimated from the data gathered that will represent the demand and supply functions respectively of an individual buyer and seller respectively for product X. Eq. 1 Eq. 2 Qd. = 65,000 – 11.25P, + 15PY- 3.751 + 7.5A Qs. = 7,500 + 14.25P. – 15P.– 3.75C where Pr- price of product X; Py - price of product Y; I- average consumer's income; A – advertising expenditure; Pz- price of product 2; and C– cost of production. Use the following additional information: the price of a related product, Y, is P41.25; the average consumer's income is P12,000; advertising expenditure is P2,500; the price of product Z is P90; and the cost of production is P1,200. There are 30 identical buyers and 50 identical sellers in the market for product X. A. What is the market price of product Xx? Round-up to two decimals.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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