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As the manager at Clean-Well Corporation, your research staff provided you with the estimated demand function for your product: Q_x^d= 8,000- 4Px+3Py- 1M+4A The Qd

As the manager at Clean-Well Corporation, your research staff provided you with the estimated demand function for your product:

Q_x^d= 8,000- 4Px+3Py- 1M+4A

The Qd represents the amount consumed of good X. Px is the price of good X, Py, is the price of good Y, M is the level of income, and A is the level of expenditure in the advertisement. Assuming good X sells for P40 per unit and Y sells at P30/unit, the firm uses 4,000 units of advertising and the target buyer average income is P10,000. How much of good X will consumers buy? Is good Y a substitute to X or a complements? Is good X a normal or inferior good?

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