Suppose that from the data gathered, the individual demand and supply functions for product X are given by Eq. 1 and Eq. (2) respectively were derived, Qds = 3.7 – 0.74P$+ 0.00091 + 0.28P% Eq. 1 Qss = -119.33 + 69.38P$ – 13.88C Eq. 2 where Px- price of product X; I – weekly income; Pr – price of product Y; and C – cost of production. Use the following additional information: the weekly income is P4,485; the price of a related product, Y, is P37.45; the cost of production is P19.50; there are 500 buyers and 16 sellers in the market for product X. A. Derive the market demand function. B. From (A), what is Ps that will make all the buyers stop purchasing this product? Round-up to two decimals. c. The consumers will want to consume a maximum of_ units of this product; beyond this amount, they will experience lesser satisfaction.
Suppose that from the data gathered, the individual demand and supply functions for product X are given by Eq. 1 and Eq. (2) respectively were derived, Qds = 3.7 – 0.74P$+ 0.00091 + 0.28P% Eq. 1 Qss = -119.33 + 69.38P$ – 13.88C Eq. 2 where Px- price of product X; I – weekly income; Pr – price of product Y; and C – cost of production. Use the following additional information: the weekly income is P4,485; the price of a related product, Y, is P37.45; the cost of production is P19.50; there are 500 buyers and 16 sellers in the market for product X. A. Derive the market demand function. B. From (A), what is Ps that will make all the buyers stop purchasing this product? Round-up to two decimals. c. The consumers will want to consume a maximum of_ units of this product; beyond this amount, they will experience lesser satisfaction.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
please answer a,b,c
Transcribed Image Text:Suppose that from the data gathered, the individual demand and supply functions for product
X are given by Eq. 1 and Eq. (2) respectively were derived,
Qds = 3.7 – 0.74P$+ 0.00091 + 0.28P%
Eq. 1
Qss = -119.33 + 69.38P$ – 13.88C
Eq. 2
where Px- price of product X; 1 – weekly income; Pr –- price of product Y; and C– cost of
production.
Use the following additional information: the weekly income is P4,485; the price of a related
product, Y, is P37.45; the cost of production is P19.50; there are 500 buyers and 16 sellers in
the market for product X.
A. Derive the market demand function.
B. From (A), what is Ps that will make all the buyers stop purchasing this product? Round-up
to two decimals.
c. The consumers will want to consume a maximum of
units of this product; beyond
this
amount,
they
will
experience
lesser
satisfaction.
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