Annual demand and supply for the Entronics company is given by: QD = 5,000 + 0.5 I + 0.2 A - 100P, ...
To calculate the annual demand and supply for the Entronics company using the given equation, you need additional information. The equation you have provided represents the demand equation, but you also need the supply equation to determine the equilibrium price and quantity.
In general, the demand equation represents the relationship between the quantity demanded (QD) and several independent variables. In this case, the equation includes income (I), advertising expenditure (A), and price (P) as the independent variables.
The demand equation you provided is:
QD = 5,000 + 0.5I + 0.2A - 100P
To calculate the annual demand for Entronics, you need to know the values of income (I) and advertising expenditure (A), as these variables impact the quantity demanded. Additionally, you need the price (P) to determine the specific quantity demanded at that price level.
To calculate the supply equation, you will need a separate equation that represents the relationship between the quantity supplied (QS) and the price (P). The supply equation could include variables such as the cost of production, the price of inputs, and other factors that influence the quantity supplied.
Once you have both the demand and supply equations, you can find the equilibrium price and quantity by setting the quantity demanded equal to the quantity supplied:
QD = QS
Substitute the demand and supply equations into this equation and solve for the equilibrium price and quantity.
Please provide the supply equation or any other required information to calculate the annual demand and supply for Entronics accurately.