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There Are Two Closely Related Crops,X and Y,with the Following

question 49

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There are two closely related crops,X and Y,with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X,PX is the price of X,QY is the quantity of Y,and PY is the price of Y.These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves.The short-run perfectly inelastic supply for X is 200 while the short-run perfectly inelastic supply for Y is 100.In equilibrium,the prices are


Definitions:

Equilibrium Quantity

The quantity bought and sold at the equilibrium price.

Expensive

Describes goods or services that have a high price or cost, often relative to similar items.

Mad Cow Disease

A neurological disorder in cattle that can be transmitted to humans, leading to a fatal brain disease known as variant Creutzfeldt-Jakob disease.

Upward Pressure

A situation in which there is an increase in prices or demand in the economy or a specific market.

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