ZuoTi.Pro
Question

Suppose Qxd = 10,000 - 2 Px + 3 Py - 4.5M, where Px = $100,...

Suppose Qxd = 10,000 - 2 Px + 3 Py - 4.5M, where Px = $100, Py = $50, and M = $2,000.

(Note that Qdx is the quantity demanded of Good X, Px is the price of Good X, Py is the price of another product called Good Y, and M stands for income available.)

Use this information to answer the following three parts of question 6.

a. For this demand equation, what is the P intercept?

b. For this demand equation, what is the Q intercept?

c. Is Good X normal good or an inferior good?

d. If M changes to $1500, how much does Qd of X change?

e. Are Good X and Good Y substitutes or complements? How do you know?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Suppose Qxd = 10,000 - 2 Px + 3 Py - 4.5M, where Px = $100,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • The demand for good X is given by QXd = 6,000 - (1/2)PX - PY +...

    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...

  • The demand for good X is given by QXd = 6,000 - (1/2)PX - PY +...

    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...

  • QD=8000-2P2 +0.4 I-2 PY +SP2 QD = Quantity demanded of good & PX = Price of...

    QD=8000-2P2 +0.4 I-2 PY +SP2 QD = Quantity demanded of good & PX = Price of good x I= consumer of Income (In thousands) PY= Price of good Y P2= Price of good 2 1) what are the you don't need Price intercept intercepts and slope of your demaner curve? to draw the demand curve. Just indicate the and the quantity intercep and slope. 2) If the price of good x is $100, what is quantity demanded 3) suppose price...

  • The demand curve is given by: Qdx=500-1.5Px-0.2I-2Py+Pz Where Qdx= quantity demanded of good X Px= Price...

    The demand curve is given by: Qdx=500-1.5Px-0.2I-2Py+Pz Where Qdx= quantity demanded of good X Px= Price of good X I= income (in thosands) Py= Price of good Y Pz= Price of good Z A. Is good X a normal or inferior good? Why? B. What is the relationship between goods X & Y? Why? C. What is the relationship between goods X & Z? Why? D. What is the equation of this demand curve if income is $40,000, the price...

  • Qd=680-9Px-6I+4Py where Qd=quantity of good X demanded, Px=price of good X, I=Income, and Py=price of related...

    Qd=680-9Px-6I+4Py where Qd=quantity of good X demanded, Px=price of good X, I=Income, and Py=price of related good Y. From the demand function, it is apparent that good X is: I. a normal good II. an inferior good III. a substitute for good Y IV. a complement with good Y a. II only b. both I and III c. both I and IV d. both II and III e. both II and IV

  • The inverse demand curve for product x is given by px=20−4·qx+2·py where px represents the price...

    The inverse demand curve for product x is given by px=20−4·qx+2·py where px represents the price in dollars per unit, qx represents the rate of sales in pounds per week, and py represents the selling price of another product y in dollars per unit. The inverse supply curve of product x is given by px=10+2·qx Determine the equilibrium price and sales of X Let py=$10. Determine whether x and y are substitutes or complements

  • Anna's utility function is given by U (r.y) = (r + 3) (y + 2), where...

    Anna's utility function is given by U (r.y) = (r + 3) (y + 2), where I and y are the two goods she consumes. The price of good r is p ,. The price of good y is Py. Her income is m. (a) Write her maximization problem and find her demand functions for the two goods. Is it always possible to have an interior solution? Justify your answer. (b) Are the two goods ordinary or giffen? Are the...

  • Qp-8000-2Px+0.41-2Py+5Pz Where OD quantity demanded of good X Px price of good X Iconsumer income, in...

    Qp-8000-2Px+0.41-2Py+5Pz Where OD quantity demanded of good X Px price of good X Iconsumer income, in thousands Py price of good Y Pz price of good Z a. Based on the demand curve above, is X a normal or an inferior good? b. Based on the demand curve above, what is the relationahip between good X and good Y? c. Based on the demand ourve above, what is the relationship between good X and good Z7 d. What is the...

  • Question 2 Suppose the demand for DVD players (good X) is given by * = 1200...

    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 marketing department of the X Corporation provided its management with the following estimate of the...

    The marketing department of the X Corporation provided its management with the following estimate of the demand function for the firm’s product: QdX = 12,000 – 3 PX + 4 PY – 1M + 2AX where QdX is the amount consumed of good X, PX is the price of good X, PY is the price of good Y, M is consumer income and AX is the amount of advertising devoted to good X. Suppose good X sells for $200 per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT