Question
(a) The market for Good X consists of three consumers. The consumers' demand functions are shown below. No consumer will consume X below a 0
(a) The market for Good X consists of three consumers. The consumers' demand functions are shown below. No consumer will consume X below a 0 quantity
- (Demand Function Consumer A) Qd = 180 - 2P
- (Demand Function Consumer B) Qd = 150 - 3P
- (Demand Function Consumer C) Qd = 120 - 2P
This means the market demand for good X at $30 is......... units and at $50 its is............
units.
b) Suppose the price of Good Y falls by 10% and the market demand for Good X rises by 20 units at all prices. This means that the two goods are..........
(It's either complements or substitutes) - not sure
(c) A demand curve will slope downward if it is an inferior good and theincome effectis........
(answer is either - less than, greater than, thesubstitution effect.)
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