Given the demand function for Pepsi Cola as Qd= 60-2Pc + 0.01M +4Pr where Qd = Demand for Pepsi Cola. Pc = Price of Pepsi Cola. Pf = Price of Fanta and M= Income, answer the following questions: Is Pepsi Cola a normal or inferior good and why?Is Fanta a substitute or complement to Pepsi Cola and why?Derive an equation for the demand function for Pepsi Cola if M=18000 and Pf = 90Please I need solutions for question 4, 5 and 64. If the supply function for Pepsi Cola is given by Qs = -200 + 6Pc, Calculate the equilibrium price and quantity for Pepsi Cola5. Find the Consumer and Producer Surpluses for Pepsi Cola6. Calculate the price elasticity of supply for Pepsi Cola and explain your answer

Answer: Given, Demand function: Qd=60-2Pc+0.01M+4PfNote: in the demand function you have written Pr…

Answered: Given the demand function for Pepsi…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Given the demand function for Pepsi Cola as Qd= 60-2Pc + 0.01M +4Pr where Qd = Demand for Pepsi Cola. Pc = Price of Pepsi Cola. Pf = Price of Fanta and M= Income, answer the following questions:

Is Pepsi Cola a normal or inferior good and why?
Is Fanta a substitute or complement to Pepsi Cola and why?
Derive an equation for the demand function for Pepsi Cola if M=18000 and Pf = 90

Please I need solutions for question 4, 5 and 6

4. If the supply function for Pepsi Cola is given by Qs = -200 + 6Pc, Calculate the equilibrium price and quantity for Pepsi Cola

5. Find the Consumer and Producer Surpluses for Pepsi Cola

6. Calculate the price elasticity of supply for Pepsi Cola and explain your answer

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

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