Suppose a demand curve for x is given by Q, = 90 – 2P, + 2P, - 5M, where Q, is the quantity demanded of x, P, its price, P, the price of some other good y, and M represents the demander's income. a. Is xa normal good or an inferior good? b. What is Q, when P,= 5,: P, = 2; M =50? c. What is the own price elasticity of Q. when the price of x goes up from 5 to 6 (assume P, = 2; M =50)?

Suppose a demand curve for x is given by Q, = 90 – 2P, + 2P, - 5M, where Q, is the quantity demanded of x, P, its price, P, the price of some other good y, and M represents the demander's income. a. Is xa normal good or an inferior good? b. What is Q, when P,= 5,: P, = 2; M =50? c. What is the own price elasticity of Q. when the price of x goes up from 5 to 6 (assume P, = 2; M =50)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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