Question

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 equation of the demand curve if consumer incomes are $75,000, the price of good Y is $80, and the price of good Z is $1057 e. What are the intercepts and slope of your demand curve? You do not need to draw the demand curve Just indicate the price intercept and the quantity intercept and the slope f. If the price of good X is $100, what is the quantity demanded? g. Now suppose the price of good Z rises to $150. What would happen to your demand curve? What are the price intercept, quantity Intercept and slope? For the Sootr, pess ALT-P10 PO) or ALTFNF10 (Mac)

Answer 1

- 8000 - 2 Px +0.41- 2 Py 7 512 posique (0.4) imples In Coefficient of variable I (income) is as and I is politively related. Hence, God x is a normal good. 16 Wefficient of variable 'py is negahue (-2) implies als and by is negatively related. It means a ride in price of goody leads to decrease in demand for good x Hence, God x and Goodgy are bot complementary goods o cefficer of variable 'pz' is pusiare (5) implies can and ? is positively related. It means a ride win price of good a leads to increase in demand for good of x. fence, God X and God z are subettute goods.

10=8000 - 28x + 0.4I apyt5P2 Test I - 7500g Py = 8 P2 = 105 o > Bow – 2Px+0.4 (560) - 280) + s (ius) - Bove - 2Px + 3uuro - 160 + 525 00 – 38365 - 28% (Demund equation) LOOD33365-288 - ۷ رو در د X-axis intercept put Px = 0 and solve for as = = 38365 - 2(0) 160 - 38 365 put cas o and solve for PX 12 = 33315 - 2px 1 - Px = (38365/2) B. 19182.5 slope of demond care 191825 ao - 33315 - 2R doD - -2 JPx - DPX - - - -0.5 (slupe) Job OD 38365 O = 33365 - 284 Oo - 333152(10) 160 38165 Canoakty domanded at Px-10).

now }z > 150. Buco - 2] +0.41 - 2y +512_ A = 26.-284764 (18we) - 2(8.) +5 (150) Bow - 2 P x + 30000 -160 + 750 10: 3359-22 F (New Demond egoction) Atsinlercebt X-axis isteret 0 > 32598-282 - 38590 - 2px 1P1 = 39590/2 - 33590-260 I 19 295 (Price interest (Op = 3359. - slope of Demand Cory istrebt) = 33590-214 -0.5 Chew Joe). 192 1918-5 38165 3859 Donerd curve shifted right and from CD to AB.