The demand for product X depends on the price of product X as well as the...

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 - 15 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 = 190 + 30 P - 3 W

Given that Y = 45,000 and W = 9, what is the:

1. Equilibrium price?

2. Equilibrium quantity?

Suppose that income increases to 55,000 and W remains constant. What is the new:

3. Equilibrium price?

4. Equilibrium quantity?

Assuming that income remains constant at 55,000 and W increases to 14, what is the new:
5: Equilibrium price?

6. Equilibrium quantity?

Expert Solution

Rahul Sunny answered 2 years ago

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