p q Use the following additional information: the price of a related product, Y, is P41.25; theaverage consumer's income is P12,000; advertising expenditure is P2,500; the price of proluctZ is P90; and the cost of production is P1,200. There are 30 identical buyers and 50 identicalsellers 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 stoppurchasing this product? Round-up to two decimals.E. What is the interpretation of the parameter a of the market demand function?F. What is the interpretation of the parameter b of the market demand function?G. What is the interpretation of the parameter d of the market supply function?H. What is the market price of product X? Round-up to two decimals.What is the equilibrium quantity in this market?J. What is the price range that will result to a surplus in the market?K. What is the price range that will result to a shortage in the market?I.If the government will intervene in this market and imposes that the minimum price will be20% more than the market price,L. How much would be the quantity demanded? Round-up to two decimals.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 conciscly.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)?P. How many of this product will be bought and sold at this new market price? Round-upto two decimals.Q. What is the specific reason for this change in supply? 2. Assume equations 1 and 2 below were estimated from the data gathered that will representthe demand and supply functions respectively of an individual buyer and seller respectivelyfor product X.Eq. 1Eq. 2Qdx = 65,000 – 11.25Px + 15P, – 3.751 + 7.5AQsx = 7,500 + 14.25Px – 15P, – 3.75Cwhere Px - price of product X; Py - price of product Y; Iadvertising expenditure; Pz- price of product Z; and C- cost of production.average consumer's income; A

Introduction Market demand and supply function of a economy has given. p) Market demand: Qdx =…

Answered: P. How many of this product will be…

P. How many of this product will be bought and sold at this new market price? Round-up to two decimals. Q. What is the specific reason for this change in supply?

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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Please no written by hand solution Instead of assuming a linear demand curve, suppose we assume that demand is char- acterized by the following demand function qD = 13.572P −1.5 (a) Suppose the current price is $5. What is the price elasticity of demand at this price? (b) Over what range of prices is demand elastic? Inelastic? Unit elastic?
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Suppose that the supply and demand schedules for a local electric utility are as follows:Price 17 16 15 14 13 12 11Quantity supplied 9 7 5 3 1 - -Quantity demanded 3 4 5 6 7 8 9The price is in cents per kilowatt hour (kWh), and the quantity is millions of kilowatt hours. The utilitydoes not operate at prices less than 13 cents per kWh.(a) Using graph paper and a ruler, or a computer spreadsheet or presentation program, carefully graphand label the supply curve for electricity.(b) On the same graph, draw and label the demand curve for electricity.(c) What is the equilibrium price of electricity? The equilibrium quantity? Label this point on yourgraph.(d) At a price of 17 cents per kWh, what is the quantity supplied? What is the quantity demanded? Whatis the relationship between quantity supplied and quantity demanded? What term do economists useto describe this situation?(e) At a price of 14 cents per kWh, what is the relationship between quantity supplied and quantitydemanded? What…
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