The demand functions for two products are given below. P₁, P2, 91, and 92 are the prices (in dollars) and quantities for products 1 and 2. 91 = 1200-2p1 - 5p2 92 = 1300 - 5p1-3p2 What is the quantity demanded for each when the price for product 1 is $30 per item and the price for product 2 is $10 per item? Demand for product 1: Demand for product 2: Are these two products complementary goods or substitute goods? Select an answer
The demand functions for two products are given below. P₁, P2, 91, and 92 are the prices (in dollars) and quantities for products 1 and 2. 91 = 1200-2p1 - 5p2 92 = 1300 - 5p1-3p2 What is the quantity demanded for each when the price for product 1 is $30 per item and the price for product 2 is $10 per item? Demand for product 1: Demand for product 2: Are these two products complementary goods or substitute goods? Select an answer
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![### Demand Functions for Two Products
The demand functions for two products are given below, where \( p_1 \), \( p_2 \), \( q_1 \), and \( q_2 \) represent the prices (in dollars) and quantities for products 1 and 2.
\[
\begin{cases}
q_1 = 1200 - 2p_1 - 5p_2 \\
q_2 = 1300 - 5p_1 - 3p_2
\end{cases}
\]
### Quantity Demanded
#### Given Prices:
- Price for product 1 (\( p_1 \)) = $30 per item
- Price for product 2 (\( p_2 \)) = $10 per item
#### Determine the Quantity Demanded:
- **Demand for product 1**:
\[
q_1 = 1200 - 2(30) - 5(10)
\]
- **Demand for product 2**:
\[
q_2 = 1300 - 5(30) - 3(10)
\]
#### Are these two products complementary goods or substitute goods?
Select the appropriate option from the dropdown provided.
### Explanation of Results
To complete the form, calculate the exact quantities demanded by substituting the given prices into the respective demand equations. Then, analyze whether the signs of the cross-price coefficients indicate complementary or substitute goods.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F622a1a9e-da70-4332-96fa-d56b5a5adde8%2Ff46aedb7-c224-45dd-8d44-5fca444bab05%2Frxc34kg_processed.png&w=3840&q=75)
Transcribed Image Text:### Demand Functions for Two Products
The demand functions for two products are given below, where \( p_1 \), \( p_2 \), \( q_1 \), and \( q_2 \) represent the prices (in dollars) and quantities for products 1 and 2.
\[
\begin{cases}
q_1 = 1200 - 2p_1 - 5p_2 \\
q_2 = 1300 - 5p_1 - 3p_2
\end{cases}
\]
### Quantity Demanded
#### Given Prices:
- Price for product 1 (\( p_1 \)) = $30 per item
- Price for product 2 (\( p_2 \)) = $10 per item
#### Determine the Quantity Demanded:
- **Demand for product 1**:
\[
q_1 = 1200 - 2(30) - 5(10)
\]
- **Demand for product 2**:
\[
q_2 = 1300 - 5(30) - 3(10)
\]
#### Are these two products complementary goods or substitute goods?
Select the appropriate option from the dropdown provided.
### Explanation of Results
To complete the form, calculate the exact quantities demanded by substituting the given prices into the respective demand equations. Then, analyze whether the signs of the cross-price coefficients indicate complementary or substitute goods.
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