Question
I have questions for Economics. There are a questions in a) Imagine the market for Good X has a demand function of Qdx= 2,000 -14Px-7Py+
I have questions for Economics.
There are a questions in
a)
Imagine the market for Good X has a demand function of Qdx= 2,000 -14Px-7Py+ .02M +.001Ax and a supply function of Qsx= 25Px-3Pw-40, where Px is the price of Good X, Py is the price of Good Y, M is the average consumer income, and Ax is the amount spent to advertise Good X. Pw is the price of Good W, which is an input to the production of Good X.
For the above problem, calculate the consumer surplus and producer surplus in the market for Good X, both before and after the increase in the price of Good W. (Round your work to the nearest 2 decimal places.)
I know well about calculating CS, PS, DWL.
Thank you.
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