A manufacturer sells two related products, the demand for which is characterized by the following two demand functions: q1 = f1 (p1, p2) = 200 – 6p1 – p2 q2 = f2 (p1, p2) = 150 – p1 – 4p2 where pj equals price (in dollars) of product j and qj equals the demand (in thousands of units) product j. (a) How many units are expected to be demanded of each product if $18/unit is charged for product 1 and $36/unit is charged for product 2? (b) How many units are expected if the units price are $40 and $30, respectively?
A manufacturer sells two related products, the demand for which is characterized by the following two demand functions: q1 = f1 (p1, p2) = 200 – 6p1 – p2 q2 = f2 (p1, p2) = 150 – p1 – 4p2 where pj equals price (in dollars) of product j and qj equals the demand (in thousands of units) product j. (a) How many units are expected to be demanded of each product if $18/unit is charged for product 1 and $36/unit is charged for product 2? (b) How many units are expected if the units price are $40 and $30, respectively?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A manufacturer sells two related products, the demand for which is characterized by the
following two demand functions:
q1 = f1 (p1, p2) = 200 – 6p1 – p2
q2 = f2 (p1, p2) = 150 – p1 – 4p2
where pj equals price (in dollars) of product j and qj equals the demand (in thousands of units)
product j.
(a) How many units are expected to be demanded of each product if $18/unit is charged
for product 1 and $36/unit is charged for product 2?
(b) How many units are expected if the units price are $40 and $30, respectively?
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