The inverse demand curve for Product X is given by: Px = 29 - 0.005Q + 0.15Py

Where Px = Price of Product X in dollars per unit

Q = Quantity of Product X

Py = Price of another Product Y in dollars per unit

The supply curve of Product X is given by:

Px = 5 + 0.004Q

Required

i. Using appropriate calculation, deduce whether Product X and Product Y are substitutes or complements.

ii. If the price of product X is set at $21 and the price of Product Y is at $20, what is the effect in the market and describe the reaction of the firms in the industry.