Question
1.The following represents demand for widgets (a fictional product): Q D = 10,054 - 26P + 0.01M + 1.5P R where P is the price
1.The following represents demand for widgets (a fictional product):
QD = 10,054 - 26P + 0.01M + 1.5PR
where P is the price of widgets, M is income, and PR is the price of a related (fictional) good, the wodget. Supply of widgets is determined by
QS = 60P - 1,000
Determine whether widgets are a normal or inferior good, and whether widgets and wodgets are substitutes or complements
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
