Chapter 06 - Demand Problems 24. Jose's demand is given by x, = 1,000/m - 10p,...
please 24) 25) and 26
24. When the price of good X decreases, the demand for good Y also decreases. What are these goods? a. Normal goods b. Inferior goods c. Substitutes d. Complements 25. When the price of good X decreases, the demand for good Y increases. What are these goods? a. Normal goods b. Inferior goods c. Substitutes d. Complements 26. Refer to Figure 4.9. Assume that there are only two people in the market for compact discs:...
l. QD-10 +uP + βΡ, + Suppose the demand for good X is given by a. goods y and x are complements. b. goods y and x are inferior goods. c. goods y and x are normal goods d. goods y and x are substitutes. If β is positive, then: 2. Good X is a normal good and its demand is given by Q-X, +α? + α2P +a/ . Then we know that:
The demand for good X is given by QXd = 6,000 - (1/2)PX - PY + 9PZ + (1/10)M Research shows that the prices of related goods are given by Py = $6,500 and Pz = $100, while the average income of individuals consuming this product is M = $70,000. a. Indicate whether goods Y and Z are substitutes or complements for good X b. Is X an inferior or a normal good? c. How many units of good X...
Question 2 Suppose the demand for DVD players (good X) is given by * = 1200 - 22+ 3P– 82, +16M Are goods Y and Z substitutes or complements of good X? Is good X an inferior or a normal good? What is the quantity demanded of good X, if research shows that P,= 500, P,= 400, P=10, M=10,000? Determine the demand function and the inverse demand function for good X. Draw the demand curve. If the price level is...
The demand for good X is given by QXd = 6,000 - (1/2)PX - PY + 9PZ + (1/10)M Research shows that the prices of related goods are given by Py = $6,500 and Pz = $100, while the average income of individuals consuming this product is M = $70,000. a. Indicate whether goods Y and Z are substitutes or complements for good X. Good Y is: (Click to select) a substitute neither complement nor substitute a complement . Good Z is: (Click to select) a complement a...
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 (Please show work and answers to questions a-e) a. Which goods are substitutes for X? Which are complements? b. Is X an inferior or a normal good?...
3. Suppose the demand function for a firm's product is given by In Q 7-1.5 In P 2 In P, -0.5 In M +InA where P = $15, P, = $6, M $40,000, and A $350. a. Determine the own price elasticity of demand, and state whether demand is b. Determine the cross-price elasticity of demand between good X and good c. Determine the income elasticity of demand, and state whether good X is a d. Determine the own advertising...
15. In the following two panels, the demand for good X shifts due to a change in income (Panel A) and a change in the price of a related good Y (Panel B). Holding the price of good X constant at $50, calculate the following elasticities: Price of good X (dollars) Price of good X (dollars) D'(M = $65,000) D(M = $60,000) DIPy = $20) D'(Py = $24) 1 0 0 50 56 Quantity of Panel A 4450 Quantity of...
4a. At Price $100, we consume 200 units of X at an income o $40,000, and we consume 100 units of X at an income o f $5o,000. Compute the income elasticity and state whether the good is normal or inferior. Be sure to use averages for quantity and income. 4b. If the Pr iecreases from $50 to $60 and this causes the QDx to go from 300 to 500 are the goods substitutes or complements. Compute the cross price...
Chapter 2 Questions 1,2,3
PROBLEMS 1. Given the following demand schedule of a 4. commodity: P(S) 6 5 4 3 2 1 0 QD 0 10 20 30 40 50 60 Show that by substituting the prices given in the function, you obtain the corresponding quantities OD 60 10P table into the following demand equation or demanded given in the table: *2. Derive the demand schedule from the following demand function: OD' 80- 10P 3. On the same graph, plot...