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20 The inverse demand curve for product X is given by: Px = 27- 0.006Q + 0.19Py where Px represents price in dollars per unit,
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The inverse demand curve for product X is given by: Px = 27- 0.006Q + 0.19Py where Px represents price in dollars per unit, Q represents rate of sales in pounds per week, and Py represents selling price of another product Y in dollars per unit. The inverse supply curve of product X is given by: Px = 6+ 0.005Q
- Determine the equilibrium price and sales of X. Let Py = $12.
- Find the cross-price elasticity of demand for X and Y at the point where the market of X clears out. Determine whether X and Y are substitutes or complements.
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