Reference no: EM131426206
1. Solve the following equation for Qdx: Qdx = 1000 -2Px + 4Py -2Pz +10Yn -3Yi + 6T + 8#B + 4Exppy Given:
i. Py (price of substitute good y) = $10
ii. Pz (price of complementary good z) = $2
iii. Yn (income for a normal good) = $200
iv. Yi (income for an inferior good) = $20
v. T (Tastes) = 50 vi. #B (number of buyers) = 30
vii. Exppy (expectations of changes in prices and incomes) = $40
viii. Px (price of the good itself) = $100
2. Solve the following equation for Qsx: Qsx = 10 +2Px - 3C + 4 #S + 5 Tech Given:
i. C (Costs) = $100
ii. #S (number of sellers) = 500
iii. Tech (Technology factor) = 40
iv. Px (price of the good itself) = $100
3. You will probably notice that $100 is not the equilibrium price because Qdx is not equal to Qsx. The equilibrium price and quantity of x are jointly determined by supply and demand. Given the demand and supply equations in question 2 and question 3, solve for the equilibrium price and the equilibrium quantity. (Hint: you will know the answer is correct when the equilibrium quantity demanded equals the equilibrium quantity supplied)
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