Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
Question
4. The demand for good Xis given by
Q=1,200-P P+1 P,-8P, +11 M
8P₂+
10
Research shows that the prices of related goods are given by Py = $5,900
and P, = $90, while the average income of individuals consuming this
product is M = $55,000.
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 will be purchased when Px = $4,910?
d. Determine the demand function and inverse demand function for good X.
Graph the demand curve for good X.
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Transcribed Image Text:4. The demand for good Xis given by Q=1,200-P P+1 P,-8P, +11 M 8P₂+ 10 Research shows that the prices of related goods are given by Py = $5,900 and P, = $90, while the average income of individuals consuming this product is M = $55,000. 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 will be purchased when Px = $4,910? d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.
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