The demand equation for a product for a product brand of mackerel is given by the equation Qx=50-7Px+0.002I+12Py Where Qx=monthly consumption per family in cartons Px=price per carton of makerel=GHC 2.00 I=median annual family income=GHC20,000 Py=price per carton of competing brand of mackerel=2.5 Required: i.At the stated values of the explanatory variables,calculate the consumption of makerel(cartons). ii.what is the relationship between Good x and Good y? iii.what is the nature of Good x ?
The demand equation for a product for a product brand of mackerel is given by the equation
Qx=50-7Px+0.002I+12Py
Where Qx=monthly consumption per family in cartons
Px=
I=median annual family income=GHC20,000
Py=price per carton of competing brand of mackerel=2.5
Required:
i.At the stated values of the explanatory variables,calculate the consumption of makerel(cartons).
ii.what is the relationship between Good x and Good y?
iii.what is the nature of Good x ?
iv.Suppose the median annual family income increases to GHC40,000,What will be your new consumptino for Good x?
v.Suppose that the price per carton of competing brand increases GHC3.00, What will be your new consumption for Good x?
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