16. Annual demand and supply for an electronic company is given by: QD =5,000+0.5I+0.2A 100P and QS...
Fantastic news! We've Found the answer you've been seeking!
Question:
16. Annual demand and supply for an electronic company is given by: QD =5,000+0.5I+0.2A 100P and QS = ?5000 + 100P where Q is the quantity per year, P is price, I is income per household, and A is advertising expenditure.
(a) If A = $10,000 and I = $25,000, what is the demand curve?
(b) Given the demand curve in part (a), what is equilibrium price and quantity?
(c) If consumer income increases to $30,000, what will be the impact on equilibrium price and quantity?
Related Book For
Posted Date: