1). The demand for good X is given by Qx = 4,000-Px-2Py +4Pz+ 0.2M, where Py is the priceof good Y, Pz is the price of good Z, and M is income. If Py = $800, Pz= $200, and M = $5,000,what is the inverse demand function for good X?2). Consider a market characterized by the following demand and supply functions: Px = 10-2Qxand Px2+2Qx.(a). Compute the equilibrium price and quantity in this market and show in graph.(b). What will be the impact on market when an $8 per unit floor price is imposed? How many unitswill be exchanged in this market? Show in the same graph.3). If the price of ground beef falls from $7 to $4, and this leads to an increase in demand for beansfrom 80 to 120 cans, what is the cross-price elasticity of beans and ground beef at a ground beefprice of $4?

Aan inverse demand function is a mathematical relationship that expresses price as a function of…

1). The demand for good X is given by Qx = 4,000-Px-2Py + 4Pz+ 0.2M, where Py is the price of good Y, Pz is the price of good Z, and M is income. If Py = $800, Pz= $200, and M = $5,000, what is the inverse demand function for good X?

1). The demand for good X is given by Qx = 4,000-Px-2Py + 4Pz+ 0.2M, where Py is the price of good Y, Pz is the price of good Z, and M is income. If Py = $800, Pz= $200, and M = $5,000, what is the inverse demand function for good X?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1). The demand for good X is given by Qx = 4,000-Px-2Py +4Pz+ 0.2M, where Py is the price
of good Y, Pz is the price of good Z, and M is income. If Py = $800, Pz= $200, and M = $5,000,
what is the inverse demand function for good X?
2). Consider a market characterized by the following demand and supply functions: Px = 10-2Qx
and Px2+2Qx.
(a). Compute the equilibrium price and quantity in this market and show in graph.
(b). What will be the impact on market when an $8 per unit floor price is imposed? How many units
will be exchanged in this market? Show in the same graph.
3). If the price of ground beef falls from $7 to $4, and this leads to an increase in demand for beans
from 80 to 120 cans, what is the cross-price elasticity of beans and ground beef at a ground beef
price of $4?

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