iFS161/2Problem 1The demand for good x is given by100%10Research shows that the prices of related goods are given by Py56,500 and P2 $100, whilethe 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 na normal good?How many units of good X will be purchased when Px-55,230?d. Determine the demand function and inverse demand function for good X. Graph thedemand curve for good X.F6EC650 Managerial EconomicsModule 2 HomeworkProblem 2Use the accompanying graph to answer these questions.A0=6,000-a. Suppose demand is D and supply is S. If a price ceiling of $6 is imposed, what are theresulting shortage and full economic price?b. Suppose demand is D and supply is S. If a price support of $12 is imposed, what is theresulting surplus? What is the cost to the government of purchasing any and all unsoldunits?c. Suppose demand is D and supply is Sº so that the equilibrium price is $10. If an excise6DELLF7&78FB8.8F9(9prt scF10home10/F11endF12

Demand for Good x: Qdx = 6000-0.5Px-Py+9Pz+0.1MGood y and Good z are related goodsM is the Average…

Problem 1 The demand for good X is given by 02-6.000--+98 Research shows that the prices of related goods are given by Py56,500 and Pz-$100, while the average income of individuals consuming this product is M-570,000. a. Indicate whether goods Y and Z are substitutes or complements for good X. b. Is X an inferior or a normal good? How many units of good X will be purchased when Px $5,230? d. Determine the demand function and inverse demand function for good x. Graph the demand curve for good X.

Problem 1 The demand for good X is given by 02-6.000--+98 Research shows that the prices of related goods are given by Py56,500 and Pz-$100, while the average income of individuals consuming this product is M-570,000. a. Indicate whether goods Y and Z are substitutes or complements for good X. b. Is X an inferior or a normal good? How many units of good X will be purchased when Px $5,230? d. Determine the demand function and inverse demand function for good x. Graph the demand curve 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

i
FS
16
1/2
Problem 1
The demand for good x is given by
100%
10
Research shows that the prices of related goods are given by Py56,500 and P2 $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 n
a normal good?
How many units of good X will be purchased when Px-55,230?
d. Determine the demand function and inverse demand function for good X. Graph the
demand curve for good X.
F6
EC650 Managerial Economics
Module 2 Homework
Problem 2
Use the accompanying graph to answer these questions.
A
0=6,000-
a. Suppose demand is D and supply is S. If a price ceiling of $6 is imposed, what are the
resulting shortage and full economic price?
b. Suppose demand is D and supply is S. If a price support of $12 is imposed, what is the
resulting surplus? What is the cost to the government of purchasing any and all unsold
units?
c. Suppose demand is D and supply is Sº so that the equilibrium price is $10. If an excise
6
DELL
F7
&
7
8
FB
8.
8
F9
(
9
prt sc
F10
home
1
0/
F11
end
F12

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3. Suppose a 10% increase I price of a different product (such y), has resulted in a 30% decrease in the demand for OUR product (say, product X). What can you tell about cross elasticity of demand? (Calculate and demonstrate your answer). Are x and y substitutes or complement? Why?
If we know that hiking shoes are a normal good, we can conclude that ... Group of answer choices -the income elasticity of demand is equal to one. -the income elasticity of demand is positive. -the income elasticity of demand is zero. -the income elasticity of demand is greater than one. -the income elasticity of demand is negative.
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1. Calculate the Price elasticity of demand, & for the following examples: a) Demand is given by Q = 50 – P at the price of $10. b) Demand is given by Q= 100 - P, at the price of $50. %3D c) Demand is given by Q= 25 - .25P, at the price of $40. d) Demand is given by Q = 20 - .1P, at the price of $80. e) Demand is given by Q = 60 – 1/3P, at the price of $60.