Kindly answer Letter D.Using the market demand function, what is Px that will make all the buyers stop purchasing thisproduct? Round-up to two decimals.Please show COMPLETE Solution 1. Assume equations 1 and 2 below were estimated from the data gathered that will represent thedemand and supply functions respectively of an individual buyer and seller respectively forproduct X.Qdx = 65,000 – 11.25PX+ 15PY - 3.751 + 7.5AEq. 1Qsx = 7,500 + 14.25PX- 15P2 - 3.75CEq. 2where Px- price of product X; Py- price of product Y; I- average consumer's income; A- advertisingexpenditure; P2 - price of product Z; and C- cost of production.Use the following additional information: the price of a related product, Y, is P41.25; the averageconsumer's income is P12,000; advertising expenditure is P2,500; the price of product Z is P90; andthe cost of production is P1,200. There are 30 identical buyers and 50 identical sellers in the marketfor product X.A. Is product X a normal or an inferior product? Justify.B. How are product X and product Y related for the buyer? Explain.C. On the part of the seller, what kind product Z is?D. Using the market demand function, what is Px that will make all the buyers stop purchasing thisproduct? Round-up to two decimals.

Given Individual demand function: Qdx=65000-11.25Px+15PY-3.75I+7.5A Price of product Y is…

Answered: Using the market demand function, what…

Using the market demand function, what is Px that will make all the buyers stop purchasing this product? Round-up to two decimals.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Kindly answer Letter D. Using the market demand function, what is Px that will make all the buyers stop purchasing this product? Round-up to two decimals. Please show COMPLETE Solution

1. Assume equations 1 and 2 below were estimated from the data gathered that will represent the
demand and supply functions respectively of an individual buyer and seller respectively for
product X.
Qdx = 65,000 – 11.25PX+ 15PY - 3.751 + 7.5A
Eq. 1
Qsx = 7,500 + 14.25PX- 15P2 - 3.75C
Eq. 2
where Px- price of product X; Py- price of product Y; I- average consumer's income; A- advertising
expenditure; P2 - price of product Z; and C- cost of production.
Use the following additional information: the price of a related product, Y, is P41.25; the average
consumer's income is P12,000; advertising expenditure is P2,500; the price of product Z is P90; and
the cost of production is P1,200. There are 30 identical buyers and 50 identical sellers in the market
for product X.
A. Is product X a normal or an inferior product? Justify.
B. How are product X and product Y related for the buyer? Explain.
C. On the part of the seller, what kind product Z is?
D. Using the market demand function, what is Px that will make all the buyers stop purchasing this
product? Round-up to two decimals.

Identification and sourcing products or services to deliver to the marketplace and to promote them. These functions include product management, selling, pricing, marketing information, distribution, promotion, and financing.

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