yell-oyew boat ,ltd produces a popular brand of point y birds called blue meanies consider the demand and supply equation do blue meanies qd,x=150-2px+0.001i+1.5py and qs,x=60+4px-2.5w,solution

Question

yell-oyew boat ,ltd produces a popular brand of point y birds called blue meanies consider the demand and supply equation do blue meanies qd,x=150-2px+0.001i+1.5py and qs,x=60+4px-2.5w,solution

Answer 1

To find the equilibrium price and quantity of Blue Meanies, we need to set the quantity demanded (Qd) equal to the quantity supplied (Qs) and solve for the corresponding price (P).

The demand equation for Blue Meanies is given as:
Qd,x = 150 - 2Px + 0.001I + 1.5Py
where:
- Qd,x represents the quantity demanded of Blue Meanies
- Px represents the price of Blue Meanies
- I represents the income of consumers
- Py represents the price of another related good (e.g., substitute or complement)

The supply equation for Blue Meanies is given as:
Qs,x = 60 + 4Px - 2.5W
where:
- Qs,x represents the quantity supplied of Blue Meanies
- Px represents the price of Blue Meanies
- W represents some external factor (e.g., cost of production, technological advancements)

Now let's set Qd equal to Qs and solve for Px:

150 - 2Px + 0.001I + 1.5Py = 60 + 4Px - 2.5W

Bring the terms with Px together:
-2Px - 4Px = 60 - 150 + 1.5Py - 0.001I + 2.5W
-6Px = -90 + 1.5Py - 0.001I + 2.5W

Divide both sides by -6:
Px = (-90 + 1.5Py - 0.001I + 2.5W)/-6

This equation gives us the equilibrium price (Px) for Blue Meanies. To find the equilibrium quantity (Qx), we need to substitute this price value into either the demand or supply equation.

Let's use the demand equation (Qd,x = 150 - 2Px + 0.001I + 1.5Py):
Qx = 150 - 2((-90 + 1.5Py - 0.001I + 2.5W)/-6) + 0.001I + 1.5Py

Simplifying further, we can solve for Qx:
Qx = 150 + (180 - 3Py + 0.006I - 10W)/3 + 0.001I + 1.5Py
Qx = (450 + 180 - 3Py + 0.006I - 10W + 0.003I + 4.5Py)/3
Qx = (630 + 1.503I + 1.5Py - 10W - 3Py)/3

Now we have the equilibrium quantity (Qx) expressed in terms of Py, I, and W.

Please note that since we don't have specific values for Py, I, and W, we cannot determine the exact equilibrium price and quantity of Blue Meanies. However, you can substitute the values of Py, I, and W to obtain numerical solutions.