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The inverse demand curve for product X is given by: P X = 25 - 0.5 Q + 0.5 P Y , where P X
- The inverse demand curve for product X is given by: PX = 25 - 0.5Q + 0.5PY, 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 = 5 + 0.5Q.
- Let PY = $10. Determine the equilibrium sales and price of X.
- Determine whether X and Y are substitutes or complements.
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