QD = -47,214 – 90P + 0.8M - 2PR where P is the price of widgets, M is income, and PR is the price of a related (fictional) good, the wodget. Supply of widgets is determined by QS = 400P – 15,550 a. Determine whether widgets are a normal or inferior good, and whether widgets and wodgets are substitutes or complements. b. Assume that M = $68,500 and PR = $53. Solve algebraically to determine the equilibrium price and quantity of widgets. c. Generate a supply/demand graph in Excel. Be sure that P is the vertical axis and Q the horizontal. Does the graphical equilibrium correspond to your algebraic equilibrium?

Q: a. You lower your price, and at the same time, many of the local rivers are closed to fishing due to…

A: a)in first case the demand would drop down considerably as river are down so people will not be…

Q: Let's say that the demand side of the market for Blue Soda is comprised of 3 leading…

A: There are three leading agents Anthony, Brad, Claire.P is the price of 1 litre of Blue Soda and the…

Q: The question has three parts 1. Graph( attached as an image) 2. graph (attached as an image)…

A: Elasticity of demand refers to the responsiveness of the quantity demanded changes with the changes…

Q: The following represents demand for widgets (a fictional product): QD = 44,444-500P+0.2M - 2PR where…

A: Given data Qd= 44,444-500P+0.2M-2PR Qs=250P=900

Q: The marginal utility of a consumer for a particular good, measured in £, is 100-Q. Suppose the price…

A: Marginal utility describes the additional satisfaction or benefit (utility) a consumer derives from…

Q: Q 5P + (1.8) .81, SER = 1.75. Where Q is monthly sales quantity of screen guard computer glasses P…

A: Based on the given information, Maurice Smith estimated the demand for his 'screen guard' computer…

Q: Neville's passion is fine wine. When the prices of all other goods are fixed at current levels,…

A: The demanded quantity of any commodity reflects the amount of that commodity an individual is…

Q: 20) Suppose the fare for the New York Subway system increases by 25%. Will demand be more inelastic…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Consumer satisfaction from consuming goods X and Y is as follows: U=10X+14Y-X2-Y2 and consumer…

A: Consumer equilibrium is the situation where he gets maximum satisfaction level of utility with given…

Q: Tom had an "absolute need" for web help and therefore was ready to "pay anything" to get it. If this…

A: Tom has an absolute need for web help and is willing to pay any price for it.But demand is not just…

Q: The demand curve for pistachios is: P = 53-0.50. Suppose that a new study shows that eating…

A: A basic idea in economics, demand is the amount of an item or service that buyers are willing and…

Q: Page 4 of 15 3) Suppose I=$1100, Py=$10, Px-$20 and the consumer starts in equilibrium at eo If Px…

A: Approach to solving the question: Detailed explanation:Vertical axis: Price of PXHorizontal axis:…

Q: For a particular good, a 2% increase in P causes a 12% decrease in Q demanded. Which of these…

A: Along with the original price and demand, a change in the amount wanted and a change in price are…

Q: 3. Suppose all apples in the store look the same but half of them are actually not edible (and have…

A: All the customers of the store have perfect knowledge about the fact that half the apples they are…

Q: Suppose the demand function for good X is given by Q^d_X = 10 - 1.8P_x + 0.5P_y + 0.07M + 0.01A…

A: The demand refers to the different quantities of commodities that the customer is ready and willing…

Q: Suppose that the inverse demand curve for beef is given by: P, = 4-0.5Q+ 0.5P., P, is the price of…

A: It is given that the inverse demand curve for beef in the economy is Pb = 4 – 0.5Qd + 0.5Pc where…

Q: 20. The general linear demand for good X is estimated to be Q = 1 8 , 0 0 0 − 1 7 5 P + 0 . 3 5 M −…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: This question will let you examine/explore a more interesting utility function than the simple…

A: Marshallian demand focuses on the demand of individual consumers or households for a particular good…

Q: The demand for organic carrot is given by the following equation Q0 = 75-5P + Pc + 21 where Po is…

A: The objective of the question is to understand the demand function of organic carrots and how it is…

Q: 10. Comics The demand curve for original Iguanawoman comics is given by (400 – p)? q= (0 <p< 400),…

A: Answer a) Price elacitcity=Pq∂q∂P                  ∂q∂P=2(400-P)100…

Q: When the price of a certain product was considered to be "low", consumers spent $5 million monthly…

A: We are going to use economics concepts such as normal goods and budget constraints

Q: If Beluga caviar has an income elasticity of demand which is > 0 and Ramen noodles have an income…

A: Business can be of many types. For example in oil business oil is the main resource. There is oil…