Question

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 = 400 - 10 P + 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 = 60 + 5 P - 2 W
Given that Y = 10,000 and W = 6, what is the:

1. Equilibrium price?
Number


2. Equilibrium quantity?
Number


Suppose that income increases to 20,000 and W remains constant. What is the new:

3. Equilibrium price?
Number


4. Equilibrium quantity?
Number


Assuming that income remains constant at 20,000 and W increases to 11, what is the new:


5: Equilibrium price?
Number


6. Equilibrium quantity?

Answer 1

1. 24.13
2. 168.67
3. 24.8
4. 172
5. 25.47
6. 165.33