Question: Please help me solve this problem 2) Please answer the questions to the demand & supply functions below: Qdx = 50 - 0.75Px + 0.50Py
Please help me solve this problem

2) Please answer the questions to the demand & supply functions below: Qdx = 50 - 0.75Px + 0.50Py + 0.20A, Qsx = -10 + 0.50Px + 0.25Pr + 2.0TK, where goods Y & R are related goods to X through supply or demand, A is advertising related to good X, and TK is a level of technology used in producing X (25 pts). a. Given Py = $50, A = $45, Pr = $80, & TK = 15; find Qe & Pe (round to 1 decimal) (7 pts). b. At equilibrium, find: Edx, Esx, Edxy, Ea, Esxr, & Etk (round to 4 decimals) (6 pts). c. At Qe & Pe, if Py increases 10% & A increases 20%, what is the new % change in Qdx (8 pts d. What are the relations of goods Y & R to good X (be precise w/ wording) (4 pts)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
