Purchase Solution

Annual Demand and Supply

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

Solution Summary

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

Solution Preview

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 ...

Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.