We have the following weekly demand data for the video game Grand Theft Auto in a...

 

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We have the following weekly demand data for the video game Grand Theft Auto in a US town. We also have the price data for a Playstation at the same time. Price of Playstation (in $) Price of Grand Theft Auto (in $) Quantity of games demanded 300 10 310 10 100 95 90 320 300 99 310 96 10 11 9 1. (6 points) Write down the equation for the demand for Grand Theft Auto in the following form: Q = a + Bg Pg + BpPp where Q and P, are quantity demanded and price of Grand Theft Auto, P, is the price of Playstation, and a, Bg, 3p are constants. 2. (4 points) Does the demand function that you found in part (1) satisfy the law of demand? Explain. 3. (6 points) The supply curve for Grand Theft Auto in this town is Q = 2Pg Solve for the equilibrium price and quantity, as a function of Pp. How does the equilbrium price and quantity depend on Pp? Briefly explain the intuition. We have the following weekly demand data for the video game Grand Theft Auto in a US town. We also have the price data for a Playstation at the same time. Price of Playstation (in $) Price of Grand Theft Auto (in $) Quantity of games demanded 300 10 310 10 100 95 90 320 300 99 310 96 10 11 9 1. (6 points) Write down the equation for the demand for Grand Theft Auto in the following form: Q = a + Bg Pg + BpPp where Q and P, are quantity demanded and price of Grand Theft Auto, P, is the price of Playstation, and a, Bg, 3p are constants. 2. (4 points) Does the demand function that you found in part (1) satisfy the law of demand? Explain. 3. (6 points) The supply curve for Grand Theft Auto in this town is Q = 2Pg Solve for the equilibrium price and quantity, as a function of Pp. How does the equilbrium price and quantity depend on Pp? Briefly explain the intuition.