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1. Given the above demand curve, how many of good X will consumer purchase when PX...

1. Given the above demand curve, how many of good X will consumer purchase when PX is $100 a unit, PY is $50 a unit, and M is $25,000?

2. Your research department estimates that the supply function for televisions is given by:

                QXS = 5,000 + 5PX -10PR – 2PW

   When PX is $800, PR is $200, and PW is $2500, how many television sets are produced?

3. Suppose the cross-price elasticity of demand between Coke and Pepsi is 0.5. If the price of Pepsi is projected to go up 10%, how much will the demand for Coke change?

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