Question: Imagine the market for Good X has a demand function ofQdx= 2,000 - 14Px- 7Py+ .02M + .001Ax and a supply function ofQsx= 25Px- 3Pw-

Imagine the market for Good X has a demand function ofQdx= 2,000 - 14Px- 7Py+ .02M + .001Ax and a supply function ofQsx= 25Px- 3Pw- 40, wherePxis the price of Good X,Pyis the price of Good Y, M is the average consumer income, and Ax is the amount spent to advertise Good X.Pwis the price of Good W, which is an input to the production of Good X.

IfPyis $12, M is $35,000, Ax is $500,000, andPwis $300, andthe price of Good W (an input to the production of Good X) increases to $391,calculate theproducer surplus in the market for Good X after the increase in the price of Good W.(Round your work to the nearest 2 decimal places.)

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