Problem: Annual demand and supply for the Entronics company is given by:
QD = 5,000 + 0.5 I + 0.2 A - 100P
QS = -5000 + 100P
where Q is the quantity per year, P is price, I is income per household, and A is advertising expenditure.
a) If A = $10,000 and I = $25,000, what is the demand curve?
b) What is equilibrium price and quantity?
a. QD = 19,600 - 100P
b. P = $140, Q = 8,500
a. QD = 19,500 - 100P
b. P = $122.50, Q =7,250
a. QD = 19,500 - 100P
b. P = 122.00, Q = 8,500
a. QD = 22,000 - 200P
b. P = 7,250, Q = 122.50