Q6 Pc = price of a pies £ per kilo (£2per kilo)Ps = price of pear (£2 per kilo)A = advertising measured inhundreds of thousands of £5(use as 5 in your calculations)What is the demanded quantityfor apple now, based on thisequation?3 million kilos6 million kilos9 million kilos12 million kilosO All the other answers are wrong. The demand function for applesis the following.Qn = 10 - Pn + 0.2Y +0.5 Pc- 2P, + 0.2AWhere:Qn = annual sales of apples(millions of kilos)Pn = price of apples (£1 per kilo)Y = disposable income in theUK £trillions (£10 trillions)Pc = price of a pies £ per kilo (£2per kilo)Ps = price of pear (£2 per kilo)A = advertising measured inhundreds of thousands of £5(use as 5 in your calculations)

Qn=10-Pn+0.2Y+0.5Pc-2Ps+0.2AQn=Annual sales of applePn=1 EuroY = 10 EuroPc=2 EuroPs=2 EuroA = 5 Euro

Answered: Pc = price of a pies £ per kilo (£2 per…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo)