Question

I saw answers for this question and I'm confused about how to get 21.5. It says that when calculating, we need to add 1.5 to 25 to get 26.5, but why? Where does the 1.5 come from? The inverse demand curve for product X is given by Px = 25 - 0.005Q + 0.15PY, where Px represents the price in dollars per unit, Q represents the rate of sales in pounds per week, and Py represents the selling price of another product Y in dollars per unit. The inverse supply curve of product X is given by Px = 5 + 0.004Q. a) Determine the equilibrium price and sales of X. Let PY = $10. b) Find the cross-price elasticity of demand for X and Y at the point where the market of X clears out. Determine whether X and Y are substitutes or complements.

          I saw answers for this question and I'm confused about how to get 21.5. It says that when calculating, we need to add 1.5 to 25 to get 26.5, but why? Where does the 1.5 come from?

The inverse demand curve for product X is given by Px = 25 - 0.005Q + 0.15PY, where Px represents the price in dollars per unit, Q represents the rate of sales in pounds per week, and Py represents the selling price of another product Y in dollars per unit. The inverse supply curve of product X is given by Px = 5 + 0.004Q.

a) Determine the equilibrium price and sales of X. Let PY = $10.
b) Find the cross-price elasticity of demand for X and Y at the point where the market of X clears out. Determine whether X and Y are substitutes or complements.

i saw answers for this question and im confused how to get 215 as it says that when calculating we need to add 15 to 25 to get 265 but why where does the 15 come from 1the inverse demand cur 62388

Added by Kathleen T.

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