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
a. Which goods are substitutes for X? Which are complements?
b. Is X an inferior or a normal good?
c. How much X will be purchased?
d. Graph the demand curve for X given the above information.
e. How will the demand curve change if M falls to 35, 000? Is that in line with b.?
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