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. Eq. 1 Eq. 2 Qd. = 65,000 – 11.25P, + 15PY- 3.751 + 7.5A Qs. = 7,500 + 14.25P. – 15P.– 3.75C where Pr- price of product X; Py - price of product Y; I- average consumer's income; A – advertising expenditure; Pz- price of product 2; 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. What is the market price of product Xx? Round-up to two decimals.

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. Eq. 1 Eq. 2 Qd. = 65,000 – 11.25P, + 15PY- 3.751 + 7.5A Qs. = 7,500 + 14.25P. – 15P.– 3.75C where Pr- price of product X; Py - price of product Y; I- average consumer's income; A – advertising expenditure; Pz- price of product 2; 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. What is the market price of product Xx? Round-up to two decimals.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.10P: Wonopoly and natural resource prices Suppose that a firm is the sole owner of a stock of a natural...

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