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Quarterly demand and supply for the Petram Company is given by Qd = 1000 + 0.5M + 0.25A - 100P and Qs = -750 + 100P, where Q is quantity per quarter, P is price, M is income, and A is advertising expenditure. Suppose that A = 1000 and M =20,000, and answer the following questions.
What is the equilibrium price and quantity?
What is the inverse demand?
Please include the letter with each part of your answer (a, b).
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