The demand for product X depends on the price of product X as well as the average household income (Y) according to the following relationshipQdx=800-5P+0.001YThe supply of product X is positively related to own price of product X and negatively dependent upon W, the price of some input. This relationship isexpressed as:Qsx= 100+ 45 P-4 WGiven that Y = 50,000 and W= 4, what is the1. Equilibrium price? Number2. Equilibrium quantity? NumberSuppose that income increases to 60,000 and W remains constant. What is the new:3. Equilibrium price? Number4. Equilibrium quantity? NumberAssuming that income remains constant at 60,000 and W increases to 9, what is the new:5: Equilibrium price? Number6. Equilibrium quantity? Number

Equilibrium Quantity and Price are those quantity and price where demand and supply is equal in the…

Answered: The demand for product X depends on the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 559 - 16x, where q is the quantity of cookies sold when the price per cookie, in cents, is x. Use this information to answer parts a) through f). OA. Less than 17¢ OB. Prices cannot be inelastic in this case OC. Greater than 17¢ OD. Prices are inelastic at all values e) At what price is the revenue a maximum? E X= (Round to the nearest cent as needed. Use a comma to separate answers as needed.) f) At a price of 12c per cookie, will a small increase in price cause the total revenue to increase or decrease? Increase O Decrease
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Q = a + bP + cM In the demand function above, Q is quantity demanded, P is the price of this good, and M is consumer income. The parameter, b, is the effect on Q of change in P: b ΔQ /ΔΡ Using this relationship for b, find an expression for the price elasticity of demand (E). Select one: O a. E = b(Q/P) O b. E = b(P/Q) %3D O c. E = b(AQ /AP) %3D O d. E = b + (P/Q)
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The inverse demand curve corresponding to the following equation is: Qd= 100 - 3P The inverse equation is?
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