Compute the equilibrium price and quantity for a given price
The demand for product 'X' is given by
Px= 25 - 0.005Q + 0.15Py
where Px represents price in dollars per unit, Q represents sales in pounds per week, and Py, represents the selling price of a related product, 'Y', in dollars per unit.
The supply or product 'X' is given by:
Px = 5 + 0.004Q
a) Determine the equilibrium price and quantity for 'X' when T sells for $10 per unit.
b) Determine the equilibrium price and quantity for 'X' when 'Y' sells for $15 per unit.
c) Plot the functions and results for a) and b) above
d) Are 'X' and 'Y' substitutes or complements? describe.