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The Inverse Demand Curve for Product X Is Given By

question 95

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The inverse demand curve for product X is given by:
PX = 25 - 0.005Q + 0.15PY,
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 + 0.004Q.
a. Determine the equilibrium price and sales of X. Let PY = $10.
b. Determine whether X and Y are substitutes or complements.


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