Inverse delivery curve substitutes or complements

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Reference no: EM1313825

Q. The inverse demand curve for product X is given by:

PX = 25 - 0.005Q + 0.15PY

where PX represents price in dollars per unit, Q represents rate of sales in pounds per week also PY represents selling price of another product Y in dollars per unit. The inverse delivery curve of product X is given by:
PX = 5 + 0.004Q

a. Conclude the equilibrium price also sales of X. Let PY = $10.

b. Conclude whether X also Y are substitutes or complements.

Reference no: EM1313825

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