Average household income

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The demand for product X depends on the price of product X as well as the average household income (Y) according to the following relationshipQdx = 750 - 35 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 = 160 + 50 P - 3 W

Given that Y = 15,000 and W = 8, what is the:

1. Equilibrium price?

2. Equilibrium quantity?

Suppose that income increases to 25,000 and W remains constant. What is the new:

3. Equilibrium price?

4. Equilibrium quantity?

Assuming that income remains constant at 25,000 and W increases to 13, what is the new:

5: Equilibrium price?

6. Equilibrium quantity?

Reference no: EM133123962

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