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Webfoot Industries estimates the demand for its products to be: Qx= 3000-40Px-20Py+30Pz+0.1M, where M is income and Py and Pz are the prices of related
Webfoot Industries estimates the demand for its products to be:
Qx= 3000-40Px-20Py+30Pz+0.1M, where M is income and Py and Pz are the prices of related goods. Py= $25, Pz=$100, and M=$45,000
b. The demand function for Webfoot's product can be written Qx=? The inverse demand function can be written Px=? Plot the demand curve on a diagram.
c. If income were to raise by $6,000 demand for good X(at any price) would change by ?. The new demand equation is Qx=?. Plot the new demand curve on your diagram.
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