33. (2 points) Annual demand and supply for the Entronics company is given by:

QD = 5,000 + 0.5 I + 0.2 A - 100P, and 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. Given the demand curve in part a., what is equilibrium price and quantity?

34. (2 point)

Quantities Purchased

Income Good X Good Y

$30,000 2 20

50,000 5 10

Refer to the table. Using the midpoint method, calculate the income elasticity of good Y.