The demand equations for the related products A and B are given by: 9A 30 PB (PA) 9B = 50 PA (PB) where qA; qB are the quantities demanded of A and B and pA; pB are the corresponding prices in dollars per unit 1What is the value of the marginal demand for product A with respect to pA when pA = 8 and pB = 64? 2What is the value of the marginal demand for product A with respect to pB when pA = 8 and pB = 64? 3Indicate whether products A and B are complementary, competitive, or neither.

The demand equations for the related products A and B are given by: 9A 30 PB (PA) 9B = 50 PA (PB) where qA; qB are the quantities demanded of A and B and pA; pB are the corresponding prices in dollars per unit 1What is the value of the marginal demand for product A with respect to pA when pA = 8 and pB = 64? 2What is the value of the marginal demand for product A with respect to pB when pA = 8 and pB = 64? 3Indicate whether products A and B are complementary, competitive, or neither.

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

The demand equations for the related products A and B are given by:
30 PB
9A
(PA)
qB
50√ PA
(PB)
where qA; qB are the quantities demanded of A and B and pA; pB are the corresponding prices
in dollars per unit
1What is the value of the marginal demand for product A with respect to pA when pA = 8 and
pB = 64?
2What is the value of the marginal demand for product A with respect to pB when
pA = 8 and pB = 64?
3Indicate whether products A and B are complementary, competitive, or neither.

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