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.

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Kindly answer Letter A. What is the market price of product X? Round-up to two decimals. Please show COMPLETE solution
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.
Qdx = 65,000 – 11.25Px+ 15PY– 3.751 + 7.5A
Eq. 1
Qsx = 7,500 + 14.25Px – 15P2– 3.75C
Eq. 2
where Px- price of product X; Py – price of product Y; I- average consumer's income; A– advertising
expenditure; Pz - price of product Z; 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 X? Round-up to two decimals.
B. What is the equilibrium quantity in this market?
C. What is the price range that will result to a surplus in the market?
D. What is the price range that will result to a shortage in the market?
Transcribed Image Text: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. Qdx = 65,000 – 11.25Px+ 15PY– 3.751 + 7.5A Eq. 1 Qsx = 7,500 + 14.25Px – 15P2– 3.75C Eq. 2 where Px- price of product X; Py – price of product Y; I- average consumer's income; A– advertising expenditure; Pz - price of product Z; 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 X? Round-up to two decimals. B. What is the equilibrium quantity in this market? C. What is the price range that will result to a surplus in the market? D. What is the price range that will result to a shortage in the market?
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