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Annual Demand and Supply

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Annual demand and supply for the Entronics company is given by: Qd= 5,000 +0.5I+0.2A-100P and Qs=-5000=100P where Q is the quantity per year, P is price, I is income per household, and A is advertising

if A= 10,000 and I = 25,000

a. What is the demand curve

b. Given the demand curve in part a, what is the equilibrium price and quantity.

c. If consumer income increases to 30,000 what will be the impact on equilibrium price and quantity

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Solution Summary

The solution shows the demand curve , the equilibrium price , quantity

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Note: The supply curve given in the problem is Qs = -5000=100P. It is Qs = 5000 + 100P (supply curve is upward sloping function i.e. positive sloped function)

a. if A= 10,000 and I = 25,000 what is the demand curve
- Demand curve is Qd = 5000 + 0.5I + 0.2A - 100P, where I is the income, A is advertising, and P is the price
It is given that A = 10,000 and I = 25,000. Insert ...

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