Question
Qd A = 18,000 - 4P A + 3P B + 6M. You have the information that P B = $60, and M = $17,000.
QdA= 18,000 - 4PA+ 3PB+ 6M.
- You have the information that PB= $60, and M = $17,000.
- (Note that QdAis the quantity demanded of Good A, PAis the price of Good A, PBis the price of another product called Good B, and M stands for income available.In addition, note that the income enters the equation as $17,000.)
a.For this demand equation, what is the P intercept?
b.For this demand equation, what is the Q intercept?
c.Is Good A normal good or an inferior good?
d.You are given the information that PAis $90.Now, if M decreases by 50%,how much does Qd of X change?
e.Are Good A and Good B substitutes or complements?
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Financial Accounting
Authors: Jan Williams, Mark Bettner, Joseph Carcello
18th Edition
1260247945, 9781260247947
