Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, what is the price equation of the demand curve for X?

Question

Quizplus · Accepted Answer

To find the price equation of the demand curve for X, we need to isolate for P_X in the given demand function: Q_X = 5,000 - 250P_X +120P_Y +.04I 250P_X = 5,000 - Q_X +120P_Y +.04I P_X = (5,000 - Q_X + 120P_Y + .04I)/250 P_X = (5,000 + 120(50) + .04(60,000) - Q_X)/250 P_X = 53.6 - .004Q_X Therefore, the price equation of the demand curve for X is P_X = 53.6 - .004Q_X, which is choice C.

Given the Demand Function QX = 5,000 - 250PX +120PY

Given the Demand Function Q_X = 5,000 - 250P_X +120P_Y