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4. The demand for good X is given by 1 Q! = 6,000 - 2 P,- P, + 9P, + -M 10 Research shows that the prices of related goods are given by P, = $6,500 and P = $100, while the average income of individuals consuming this product is M = $70,000. a. Indicate whether goods Y and Z are substitutes or complements for good X. b. Is X an inferior or a normal good? c. How many units of good X will be purchased when P, = $5,230? d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.

4. The demand for good X is given by 1 Q! = 6,000 - 2 P,- P, + 9P, + -M 10 Research shows that the prices of related goods are given by P, = $6,500 and P = $100, while the average income of individuals consuming this product is M = $70,000. a. Indicate whether goods Y and Z are substitutes or complements for good X. b. Is X an inferior or a normal good? c. How many units of good X will be purchased when P, = $5,230? d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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11:40 + MNGT. 112N 1T... 4. The demand for good X is given by 1 Od = 6,000 – -- р, — Р, + 9P, + -M 10 Research shows that the prices of related goods are given by P, = $6,500 and P, = $100, while the average income of individuals consuming this product is M = $70,000. a. Indicate whether goods Y and Z are substitutes or complements for good X. b. Is X an inferior or a normal good? c. How many units of good X will be purchased when P, = $5,230? d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X. 5. The demand curve for product X is given by O = 300 – 2P,. a. Find the inverse demand curve. b. How much consumer surplus do consumers receive when P, = $45? c. How much consumer surplus do consumers receive when P, = $30? d. In general, what happens to the level of consumer surplus as the price of a good falls?
Transcribed Image Text:11:40 + MNGT. 112N 1T... 4. The demand for good X is given by 1 Od = 6,000 – -- р, — Р, + 9P, + -M 10 Research shows that the prices of related goods are given by P, = $6,500 and P, = $100, while the average income of individuals consuming this product is M = $70,000. a. Indicate whether goods Y and Z are substitutes or complements for good X. b. Is X an inferior or a normal good? c. How many units of good X will be purchased when P, = $5,230? d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X. 5. The demand curve for product X is given by O = 300 – 2P,. a. Find the inverse demand curve. b. How much consumer surplus do consumers receive when P, = $45? c. How much consumer surplus do consumers receive when P, = $30? d. In general, what happens to the level of consumer surplus as the price of a good falls?
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