The demand for product X depends on the price of product X as well as the average household income (Y) according to the following relationship Qdx=800-5P+0.001Y The 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 is expressed as: Qsx= 100+45 P-4 W Given that Y= 50,000 and W= 4, what is the 1. Equilibrium price? Number 2. Equilibrium quantity? Number Suppose that income increases to 60,000 and W remains constant. What is the new 3. Equilibrium price? Number 4. Equilibrium quantity? Number Assuming that income remains constant at 60,000 and Wincreases to 9, what is the new: 5: Equilibrium price? Number 6. Equilibrium quantity? Number
The demand for product X depends on the price of product X as well as the average household income (Y) according to the following relationship Qdx=800-5P+0.001Y The 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 is expressed as: Qsx= 100+45 P-4 W Given that Y= 50,000 and W= 4, what is the 1. Equilibrium price? Number 2. Equilibrium quantity? Number Suppose that income increases to 60,000 and W remains constant. What is the new 3. Equilibrium price? Number 4. Equilibrium quantity? Number Assuming that income remains constant at 60,000 and Wincreases to 9, what is the new: 5: Equilibrium price? Number 6. Equilibrium quantity? Number
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The demand for product X depends on the price of product X as well as the average household income (Y) according to the following relationship
Qdx=800-5P+0.001Y
The 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 is
expressed as:
Qsx= 100+ 45 P-4 W
Given that Y = 50,000 and W= 4, what is the
1. Equilibrium price? Number
2. Equilibrium quantity? Number
Suppose that income increases to 60,000 and W remains constant. What is the new:
3. Equilibrium price? Number
4. Equilibrium quantity? Number
Assuming that income remains constant at 60,000 and W increases to 9, what is the new:
5: Equilibrium price? Number
6. Equilibrium quantity? Number
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