Given the demand function for Pepsi Cola as Qd= 60-2Pc + 0.01M +4Pr where Qd = Demand for Pepsi Cola. Pc = Price of Pepsi Cola. Pf = Price of Fanta and M= Income, answer the following questions: Is Pepsi Cola a normal or inferior good and why?Is Fanta a substitute or complement to Pepsi Cola and why?Derive an equation for the demand function for Pepsi Cola if M=18000 solve from 4 to 10If the supply function for Pepsi Cola is given by Qs = -200 + 6Pc, Calculate the equilibrium price and quantity for Pepsi ColaFind the Consumer and Producer Surpluses for Pepsi ColaCalculate the price elasticity of supply for Pepsi Cola and explain your answerAll Giffen goods are inferior True or falseIf Government decides to fix the price of Pepsi Cola at 120, what will be excess demand or supply due to this?suppose the income increases by 1000 what will happen to the demand for Pepsi ColaFind the new equilibrium price and quantity for Pepsi Cola associated with the increase in income

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Answered: Given the demand function for Pepsi…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Given the demand function for Pepsi Cola as Qd= 60-2Pc + 0.01M +4Pr where Qd = Demand for Pepsi Cola. Pc = Price of Pepsi Cola. Pf = Price of Fanta and M= Income, answer the following questions:

Is Pepsi Cola a normal or inferior good and why?
Is Fanta a substitute or complement to Pepsi Cola and why?
Derive an equation for the demand function for Pepsi Cola if M=18000 solve from 4 to 10
If the supply function for Pepsi Cola is given by Qs = -200 + 6Pc, Calculate the equilibrium price and quantity for Pepsi Cola
Find the Consumer and Producer Surpluses for Pepsi Cola
Calculate the price elasticity of supply for Pepsi Cola and explain your answer
All Giffen goods are inferior True or false
If Government decides to fix the price of Pepsi Cola at 120, what will be excess demand or supply due to this?
suppose the income increases by 1000 what will happen to the demand for Pepsi Cola
Find the new equilibrium price and quantity for Pepsi Cola associated with the increase in income

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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