Suppose you have the following hypothetical demand or sales, Ask an Expert

Economics

Suppose you have the following hypothetical demand or sales function. Qx= -4Px+2Py+0.20I+0.04A

and

PX = $200, (price of good X)

PY =$230, (price of good Y)

I = $1,500 (disposable per capita income)

A =$12,000 (advertizing expenditures)

a. prepare out a reduced demand function

b. Solve for and prepare out the demand curve equation

c. Give a narrative interpretation for the coefficient of I

d. How could we classify good X and good Y? describe why.

e. find out expected sales.

f. Find the total revenue function

g. Find the marginal revenue function

h. What output level maximizes total revenue

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M945639

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