use the demand function below to answer the questions that follows Qdx = 3/4 - 1/3Px - 5Py + 2Pz - 2/10M a. identify which type of goods is Pz and explain it b. identify which type of good is M and explain it c. identify which type of good is Py and explain it

use the demand function below to answer the questions that follows Qdx = 3/4 - 1/3Px - 5Py + 2Pz - 2/10M a. identify which type of goods is Pz and explain it b. identify which type of good is M and explain it c. identify which type of good is Py and explain it

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 2QFR

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use the demand function below to answer the questions that follows Qdx = 3/4 - 1/3Px - 5Py + 2Pz - 2/10M a. identify which type of goods is Pz and explain it b. identify which type of good is M and explain it c. identify which type of good is Py and explain it
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What are the influences on buying plans that change demand, and do these influences increase or decrease demand? Complete the following question about a change in demand. The graph shows a demand curve for coffee makers. Draw a demand curve that shows what happens in the market for coffee makers if incomes increase and a coffee maker is a normal good, but all other influences on buying plans remain the same. Label the curve D₁. When an event occurs that changes the demand for coffee makers, and _____if demand decreases. O A. a movement up along the demand curve occurs; a movement down along the demand curve occurs О в. the demand curve shifts rightward; the demand curve shifts leftward C. the demand curve shifts leftward; the demand curve shifts rightward if demand increases OC O D. a movement down along the demand curve occurs; a movement up along the demand curve occurs E 24 20- 16- 12- 8- Price (dollars per coffee maker) Po Quantity (millions of coffee makers per year) >>> Draw only…
Harry's income declines and as a result, he buys more pumpkin juice. Is pumpkin juice an inferior or a normal good? What happens to Harry's demand curve for pumpkin juice?
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Peanut butter and jam can be either substitutes or it can be compliments. Caitlin likes peanut butter and she likes jam, but you do not know if Caitlin regards these products as substitutes or as compliments. Which of the following is true? A. If the price of peanut butter decreases and the quantity of jam Caitlin demanded increases, then Caitlin regards it as substitutes. B. If the price of jam increases and the quantity of peanut butter Caitlin demanded increases, then Caitlin regards it as compliments. C. If the price of peanut butter increases and the quantity of jam Caitlin demanded increases, then Caitlin regards it as substitutes. D. If the price of jam decreases and the quantity of peanut butter Caitlin demanded decreases, then Caitlin regards it as compliments. E. If the price of peanut butter increases and the quantity of jam Caitlin demanded stays the same, Caitlin regards it as compliments.
Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer also inferior for all the consumers? Explain.
2. Dan and Georgie share a trail behind their homes that leads to the beach. It's easier to go to the beach if the trail is kept maintained. Dan only goes to the beach infrequently, while Georgie loves to surf and kayak. Dan's demand for time spent maintaining the trail to the beach is P = 10-2Q. Georgie's demand for time spent maintaining the trail is P=16-Q Assume that time spent maintaining the trail is a public good and both Dan and Georgie value time spent maintaining the trail at $14/hour. a. How much time would Dan spend maintaining the trail on their own? How much time would Georgie spend cleaning up on her own? b. What is Dan and Georgie's combined demand curve for hours of time per week spent maintaining the trail? What is the efficient number of hours spent maintaining the trail per week? c. Explain why it may be hard for Dan and Georgie to reach the efficient outcome.
Suppose that you discover that, ceteris paribus, when the price of tomatoes increases, the demand for bleu cheese decreases. From this you conclude that: tomatoes and blue cheese are substitutes. tomatoes are inferior goods and blue cheese is a normal good. tomatoes and blue cheese are complements. the demand curve for tomatoes has shifted to the left.
explain how utility analysis leads to the law of demand.