Xaquane and Yullare Are Obscure but Talented Eighteenth-Century Painters

question 48

Multiple Choice

Xaquane and Yullare are obscure but talented eighteenth-century painters.The world's stock of Xaquanes is 100 and the world's stock of Yullares is 70.The demand for each painter's work depends on its own price and the price of the other painter's work.If P_x is the price of Xaquanes and P_y is the price of Yullares, the demand function for Xaquanes is 101 - 3P_x + 2P_y and the demand function for Yullares is 72 + P_x - P_y.What is the equilibrium price for Yullare's paintings?

• A)$5
• B)$11
• C)$12
• D)$7
• E)None of the above.

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