Given the demand function Q_X = 1500 - 100P_X + 75P_Y + 1.5I + .06A where P_Y = $40.00. I = $2500, and A = $5,000, what is the price equation?

Question

Quizplus · Accepted Answer

We can obtain the price equation by rearranging the demand function: Q_X = (1500 + 75P_Y + 1.5I + 0.06A) / (100 + P_X) Substituting the given values yields: Q_X = (1500 + 75(40) + 1.5(2500) + 0.06(5000)) / (100 + P_X) Simplifying the numerator and solving for P_X: P_X = 85.5 - 0.01Q_X

Given the Demand Function QX = 1500 - 100PX

Given the Demand Function Q_X = 1500 - 100P_X