The demand for your product X has been estimated to be QX = 7, 880 − 4PX − 2PY + PZ − 0.1M where Y and Z are other (related) products. The relevant price and income data are as follows: PX = 10, PY = 15, PZ = 50, M = 40, 000 Which goods are substitutes for X? Which are complements Is X an inferior or a normal good How much X will be purchased? Graph the demand curve for X given the above How will the demand curve change if M falls to 35, 000? Is that in line with b?
The demand for your product X has been estimated to be QX = 7, 880 − 4PX − 2PY + PZ − 0.1M where Y and Z are other (related) products. The relevant price and income data are as follows: PX = 10, PY = 15, PZ = 50, M = 40, 000 Which goods are substitutes for X? Which are complements Is X an inferior or a normal good How much X will be purchased? Graph the demand curve for X given the above How will the demand curve change if M falls to 35, 000? Is that in line with b?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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(Just question 4 and 5) Exercise 1. The
QX = 7, 880 − 4PX − 2PY + PZ − 0.1M
where Y and Z are other (related) products. The relevant price and income data are as follows: PX = 10, PY = 15, PZ = 50, M = 40, 000
- Which goods are substitutes for X? Which are complements
- Is X an inferior or a normal good
- How much X will be purchased?
- Graph the demand curve for X given the above
- How will the demand curve change if M falls to 35, 000? Is that in line with b?
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