Question (1):
Consider the market for good x.
Q=183.5-2.3p
Q=3.2p+51.5
- Find the market equilibrium price and quantity for good x.
- Consider that more consumers are opting to consume more units
of good y and fewer units of good x, since the price per unit of
good y is cheaper than the price per unit of good x. The quantity
demanded for the number of units of good x is now at 124.5 (in
millions of units).
- What will be the new equilibrium price?
- Derive the new function based on this new development.
Answers: