The following represents demand for widgets (a fictional product): QD = 44,444-500P+0.2M - 2PR where P is the price of widgets, M is income, and PR is the price a related (fictional) good, the wodget. Supply of widgets is determined by Qs = 250P + 900 Widgets are Select one: a. a normal good; substitutes. b. an inferior good; substitutes. an inferior good; complements. O d. a normal good; complements. and widgets and wodgets are C.

If the demand for coffee decreases as income decreases, coffee is a(n): complementary good.substitute good.inferior good.normal good. Flag this Question

Consider two markets: the market for waffles and the market for pancakes. The initial equilibrium for both markets is the same, the equilibrium price is $6.50, and the equilibrium quantity is 35.0. When the price is $9.75, the quantity supplied of waffles is 57.0 and the quantity supplied of pancakes is 101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for pancakes. Please round to two decimal places. Supply in the market for waffles is

Now suppose that the good is an inferior good. Would the demand schedule still be valid for an inferior good

When the price of a certain product was considered to be "low", consumers spent $5 million monthly on it.  After the price doubled, the total consumer expenditures increased to $7 million. Recently you read that this means that the demand curve for this product is upward sloping. Do you agree? Explain.

A 5 percent decrease in the price of avocados leads to a 20 percent increase in the quantity of salsa demanded. It appears that:   Question 26 options:   Salsa and avocados have a secret relationship that no one (except for the bananas) knows about.   salsa is a complement good to avocados.   salsa is a substitute good to avocados.   there is no relationship between demand for salsa and demand for avocados.

Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (DS = demand for the Sky Eagle, Ps is the selling price of the Sky Eagle, DH is the demand for the Horizon and PH is the selling price of the Horizon): Ds = 225 - 0.6 Ps + 0.3 PH DH = 270 + 0.1 Ps - 0.58 PH The store wishes to determine the selling price that maximizes revenue for these two products. Select the revenue function for these two models. Choose the correct answer below.   (i) Ps Ds + PHDH = PH(270 - 0.1 Ps - 0.58 PH) + Ps(225 - 0.6 Ps + 0.3 PH) (ii) Ps Ds - PH DH = Ps(225 - 0.6 Ps + 0.3 PH) - PH(270 - 0.1 Ps - 0.58 PH) (iii) Ps Ds + PH DH = Ps(225 - 0.6 Ps + 0.3 PH) + PH(270 + 0.1 Ps - 0.58 PH) (iv) Ps Ds - PH DH = Ps(225 + 0.6 Ps + 0.3 PH) - PH(270 - 0.1 Ps - 0.58 PH)       Find the prices that maximize revenue. Do not round intermediate calculations. If required, round your answers to two decimal places. Optimal Solution: Selling price of…

The cross-price elasticity between the good sold in this market (call it X) and another good (Y) is εXY = –0.80. The cross-price elasticity between the good X and good Z, on the other hand, is εXZ = 1.50. Are X and Y substitutes, complements, or unrelated? How about X and Z? Explain.

When the price of good Y increases from $2 to $3, the quantity demanded for good X decreases from 20 units to 10 units. Calculate the cross-price elasticity of demand between goods X and Y. (Round all decimal calculations to the closest ten- thousandths so your percentages are rounded to the closest hundredths; round your final answer to the closest hundredths.) Are goods X and Y complements or substitutes?

If Beluga caviar has an income elasticity of demand which is > 0 and Ramen noodles have an income elasticity of < 0, it means that Multiple Choice The two goods are complements Beluga caviar is a normal good and Ramen noodles are an inferior good Beluga caviar has fewer substitutes than Ramen noodles Beluga caviar is an inferior good and Ramen noodles are a normal good