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The demand and supply functions for seats on a special shuttle flight from Dubai to Mekah...

The demand and supply functions for seats on a special shuttle flight from Dubai to Mekah have been estimated as follows;

Qd=90-2P+.05Y-0.5W+1.25Pc

where Qd= quantity demanded , P=price , Y= income , W = weather, Pc= price of competition;

Qs=-20-5Pf+3P

where Qs= quantity supplied , Pf= price of fuel;

assumimg Y=100, w=70; Pc=16 ; Pf=6

a);Derive the demand equation

b)Derive the supply equation

c) determine the equilibrium price and quantity.

d) what is the price elasticity of demand at the equilibrium price?

e) calculate the income elasticity of demand EM. Is good X normal or inferior?
f) show the effect of an increase in the price off the substitute from 16 to 20 aed on the equilibrium price and quantity

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