That system are in balance so that there is no

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that system are in balance, so that there is no  tendency for the variables in the system to change  (GR 1992).  Existence Stability Uniqueness Concept of equlibrium
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The inverse demand curve for product X is given by:  PX = 25 - 0.005Q + 0.15PY,  where PX represents price in dollars per unit, Q represents rate of sales in pounds per week, and PY represents selling price of another product Y in dollars per unit.  The inverse supply curve of product X is given by: PX = 5 + 0.004Q. a. Determine the equilibrium price and sales of X. Let PY = $10.  b. Determine whether X and Y are substitutes  or complements.  Excercise
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a .   Equate supply to demand to calculate Q.  25 - 0.005Q + 0.15(10) = 5 + 0.004Q  21.5  = 0.009Q  Q = 2,388.9 units per week  At Q = 2,388.9,   P = 25 - .005(2,388.9) +  0.15(10)  = $14.56 per unit.  b.   Since we can solve for quantity demanded  as a function of prices,  Answer:   005 . 0 15 . 0 25 x y P P Q - + =
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