Chapter 14.3, Problem 29E

(a)

To determine

To calculate: The marginal demand of $q_A$ with respect to $p_A$. The demand functions for $q_A$ and $q_B$ units of two related products, A and B, are given by $q_A=5000-50p_A-\frac{600}{p_B+1}$ and $q_B=10000-\frac{400}{p_A+4}+\frac{400}{p_B+4}$. Assume that $p_A$ and $p_B$ are in dollars.

(b)

To determine

To calculate: The marginal demand of $q_A$ with respect to $p_B$. The demand functions for $q_A$ and $q_B$ units of two related products, A and B, are given by $q_A=5000-50p_A-\frac{600}{p_B+1}$ and $q_B=10000-\frac{400}{p_A+4}+\frac{400}{p_B+4}$. Assume that $p_A$ and $p_B$ are in dollars.

(c)

To determine

To calculate: The marginal demand of $q_B$ with respect to $p_B$. The demand functions for $q_A$ and $q_B$ units of two related products, A and B, are given by $q_A=5000-50p_A-\frac{600}{p_B+1}$ and $q_B=10000-\frac{400}{p_A+4}+\frac{400}{p_B+4}$. Assume that $p_A$ and $p_B$ are in dollars.

(d)

To determine

To calculate: The marginal demand of $q_B$ with respect to $p_A$. The demand functions for $q_A$ and $q_B$ units of two related products, A and B, are given by $q_A=5000-50p_A-\frac{600}{p_B+1}$ and $q_B=10000-\frac{400}{p_A+4}+\frac{400}{p_B+4}$. Assume that $p_A$ and $p_B$ are in dollars.

(e)

To determine

Whether the two goods, A and B, are competitive or complementary. The demand functions for $q_A$ and $q_B$ units of two related products, A and B, are given by $q_A=5000-50p_A-\frac{600}{p_B+1}$ and $q_B=10000-\frac{400}{p_A+4}+\frac{400}{p_B+4}$. Assume that $p_A$ and $p_B$ are in dollars.