Managerial Economics Homework Help?

Posted on 2014-04-17 10:12:00 in Economics by STAR CHASER

Demand for flower bouquets in a suburban town is described by: QD = 50 – 5 P + 2 Y, where Q is quantity, P is price per unit, and Y is an index of consumer income. Similarly, supply is described by QS = 10 P – 5.





a) If Y = 100, what is equilibrium price and output?

b) If Y rises to 122.5, what is the new equilibrium price and output?

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