Answer:
2.1 Louis Vuitton, a designer of luxury goods, is interested in analysing the domestic market for Monogram bags. The staff estimated the following equations for the demand and supply of Monogram bags: The demand for Monogram bags is Qd = 10 000 + 0.5I + 0.4A – 200P The supply of Monogram bags is Qs = –15 000 + 100P where Q is the quantity per year, P is price, I is income per household and A is advertising expenditure.
Step-by-step explanation: