Question
Please provide detailed explanation from the following: Suppose you have the following hypothetical demand or sales function. Qx= -4Px+2Py+0.20I+0.04A and PX = $200, (price of
Please provide detailed explanation from the following:
Suppose you have the following hypothetical demand or sales function.
Qx= -4Px+2Py+0.20I+0.04A
and
PX = $200, (price of good X)
PY =$230,(price of good Y)
I = $1,500 (disposable per capita income)
A =$12,000 (advertising expenditures)
a. Write out a reduced demand function.
b. Solve forand write out the demand curve equation.
c. Give a narrative interpretation for the coefficient of I.
d. How could we classify good X and good Y? Explain why.
e. Calculate expected sales.
f.Find the total revenue function.
gFind the marginal revenue function.
hWhat output level maximizes total revenue?
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