The demand for good X is given by QXd = 6,000 - (1/2)PX - PY + 9PZ + (1/10)M Research shows that the prices of related goods are given by Py = $6,500 and Pz = $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. Good Y is: (Click to select) a substitute neither complement nor substitute a complement . Good Z is: (Click to select) a complement a substitute neither complement nor substitute . b. Is X an inferior or a normal good? Good X is: (Click to select) an inferior good neither a normal nor an inferior good a normal good . c. How many units of good X will be purchased when Px = $5,230?
Please written by hand solution
The
QXd = 6,000 - (1/2)PX - PY + 9PZ + (1/10)M
Research shows that the
a. Indicate whether goods Y and Z are substitutes or complements for good X.
Good Y is: (Click to select) a substitute neither complement nor substitute a complement .
Good Z is: (Click to select) a complement a substitute neither complement nor substitute .
b. Is X an inferior or a normal good?
Good X is: (Click to select) an inferior good neither a normal nor an inferior good a normal good .
c. 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.
Instruction: Enter all values as integers, or if needed, a decimal rounded to one decimal place.
Demand function: ( ) - ( ) PX
Inverse demand function: PX = ( ) - ( ) QXd
Instruction: Use the tool provided 'D' to graph the inverse demand curve from QX = 0 to QX = 6,000
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