Question
The demand for your product has been estimated to be Qx =8000 - 5Px- 3 Py+ Pz +.1M The relevant price and income data are
The demand for your product has been estimated to be
Qx =8000 - 5Px- 3 Py+ Pz +.1M
The relevant price and income data are as follows:
Px (Price of x)= 10
Py (Price of y) = 20
Pz (Price of z) =60
M (Income) = $50,000
a. Which goods are substitutes for X? Which are complements?
b. Is X an inferior or a normal good?
c. How much X will be purchased?
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
