Correct Answer:
A
Explanation:
As per the given demand equation:
Increase in income, will lead to increase in quantity demanded and vice versa. So, the product is normal good. Further, increase in price of the related good (wodgate) leads to increase in demand of widget. So, widgets and wodgets are substitute to each other.
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Correct Answer:
Qd = 700-100P + .5*61000 + 30*250
Qd = 38700 - 100P
Qs = 900 + 57.5P
At equilibrium,
38700 - 100P = 900 + 57.5P
P = (38700-900)/(100+57.5)
P = 240
So,
Q = 38700 - 100*240
Q = 14700
CON705-32209-SPRING2019 e/My Courses/ECON705-32209-SPRING2019Module 1- Introduction, Supply & Demand / Module One: Assessment Qu The following represents...
Courses/ ECON705-32209-SPRING2019/ Module 1 - Introduction, Supply & Demand Module One: Assessment The following represents demand for widgets (a fictional product): QD = 700-100P + 0.5M + 30PR where P is the price of widgets, M is income, and PR is the price of a related (fictiona) good, the wodget. Supply of widgets is determined by Qs = 900 + 57.5P Widgets are , and widgets and wodgets are Select one a. a normal good; substitutes. b. an inferior good;...
IUUuIe -roauction, Supply & Demand Module One: Assessment The following represents demand for widgets (a fictional product: OD 700-100P + 0.5M +30PR where P is the price of widgets, M is income, and Pe is the price of a related (fictional) good, the wodget. Supply of widgets is determined by Qs 900+57.5P Widgets are and widgets and wodgets are Select one a. a normal good; substitutes. b. an inferior good; substitutes. c. a normal good; complements d. an inferior good;...
The following represents demand for widgets (a fictional product): QD = 700 – 100P + 0.05M – 30PR where P is the price of widgets, M is income, and PR is the price of a related (fictional) good, the wodget. Supply of widgets is determined by Qs= 900 + 57.5P Determine whether widgets are a normal or inferior good, and whether widgets and wodgets are substitutes or complements. Assume that M = $61,000 and PR = $250.00. Solve algebraically to...
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Scored out of st in Week 2 2 hours 50 questions 100 Points est # 1 : Time limit: Length: Exit this Test | Time Remaining 27 minutes Save Progress Last Saved: 4:47 PM D that has many complements If an increase in thé price of woozles causes the demand for widgets to decrease, what can you infer about the two gobds? (2pts 41) a They aré goth inferior goods. B Noné othe other answers is are both normal goods....