answer MNO the answer to L is: Price floor set by the government = 1046.25*1.2=P 1255.5. Quantity demanded at that price= 1181062.5-337.5*1255.5=757331.25 units.
answer MNO the answer to L is: Price floor set by the government = 1046.25*1.2=P 1255.5. Quantity demanded at that price= 1181062.5-337.5*1255.5=757331.25 units.
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 1WNG
Related questions
Question
answer MNO
the answer to L is:
Quantity
Transcribed Image Text:M. How much would be the quantity supplied? Round-up to two decimals.
N. From L and M, what is the condition in the market? Explain concisely.
If the new supply equation will be Qs'x = 26,250 +712.50P'x,
O. What would be the new equilibrium price (round-up to two decimals)?
Transcribed Image Text: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
Qdx = 65,000 – 11.25Px + 15P, – 3.751 + 7.5A
Qsx = 7,500 + 14.25Px – 15P, – 3.75C
where Px – price of product X; Py – price of product Y; I – average consumer's income; A
advertising expenditure; Pz – 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.
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