Question

Imagine the market for Good X has a demand function of QDX = 100 – 2PX – 4PY + 0.05M + 0.1AX and a supply function of QSX = 4PX – 10, where PX is the price of Good X, PY is the price of Good Y, M is the average consumer income and AX is the amount spent to advertise Good X.
If the price of Good Y is $5, M is $5000 and AX is $10,000, find the equilibrium price of Good X.

Answer 1

Answer:

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