1. Suppose there are two consumers in the market for product X. They have the following inverseindividual demand curve: Py-20 - 0.005g + 0.IPy. P= 25 - 0.01q + 0.2Py.where Py represents price in dollars per unit, Q represents rate of sales in pounds per week, and PYrepresents selling price of another product Y in dollars per unit. The inverse supply curve ofproduct X is given by: Py =5+0.004Q. The initial price of the product Y is $10.Derive the market demand curve and function. Draw the individual demand curve anda)market curve in a diagram.b)supply curve in a diagram and indicate the equilibrium price and sales in your diagram.c).product X at the equilibrium values. Determine whether X and Y are substitutes or complements.d)Determine the equilibrium price and sales of X. Draw the market demand curve andCompute price elasticity of demand for product X and cross elasticity of demand forSuppose the price of product Y increases from $10 to $12, what is the impact on theequilibrium price and sales?

Demand Curve for consumer 1 Px = 20 - 0.005q1 + 0.1Py Demand Curve for consumer 2 Px = 25 - 0.01q2 +…

Answered: 1. Suppose there are two consumers in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The image attached is what i need help with please
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