Question
In: Economics
The demand for good X is given by QXd =10000−2PX +10PY −5PZ +I where QXd is...
The demand for good X is given by
QXd =10000−2PX +10PY −5PZ +I
where QXd is the demand for good X, PX is the price of good X, PY is the price of good Y, PZ is the price of good Z, and I is income. PX = $1000, PY = $500, PZ =$1000,andI=$2000.
a. Indicate whether goods Y is substitutes or complements for good X.(5 points)
b. Indicate whether goods Z is substitutes or complements for good X. (5 points)
c. Is X an inferior or a normal good? (5 points)
d. Calculate the cross-price elasticity of demand for good X with respect to good Z. (5 points)
e. Calculate the income-elasticity of demand for good X. (5 points)
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
QD=8000-2PX+0.4I+2PY-4PZ Where QD = quantity demanded of good X PX = price of good X I...
QD=8000-2PX+0.4I+2PY-4PZ
Where
QD = quantity demanded of good X
PX = price of good X
I = consumer income, in thousands
PY = price of good Y
PZ = price of good Z
a. Based on the demand curve above, is X a normal or an inferior
good?
b. Based on the demand curve above, what is the relationship
between good X and good Y?
c. Based on the demand curve above, what is the relationship
between good X and...
Suppose that the general demand function for good X is Qd = 60 – 2Px 0.01M...
Suppose that the general demand function for good X is
Qd = 60 – 2Px 0.01M 7PR
where
Qd is quantity of X demanded,
Px is price of X,
M is average consumer income, and
PR is price of a related good R.
a)Is good X normal or inferior? Explain.
b)Are good X and R substitutes or complements? Explain.
c)Suppose that M = $40,000 and RR = $20. What is the demand
function of good X.
d)Suppose the supply function...
a. The demand for good x is given by x∗ = 60−4Px +2M +Py, where Px...
a. The demand for good x is given by x∗ = 60−4Px +2M +Py, where
Px is the price of good x, Py is the price of good y, and M is
income. Find the own-price elasticity of demand for good x when Px
=20,Py =20, and M =100. Is x an ordinary or giffen good?
Explain.
b. The demand for good x is given by x∗ = 60−4Px +2M +Py, where
Px is the price of good x, Py...
Demand for good X is X = 100 – 4P, where P is the market price...
Demand for good X is X = 100 – 4P, where P is the market price
of X. A monopolist supplies this market and has a cost function
5X.
When the monopolist produces his optimal level of X, what is the
resulting deadweight loss in the economy?
Could you draw the graph with curves?
(a.) $180
(b.) $200
(c.) $222
(d.) $285
Q10. The demand for good X is given by the following equation: QX =...
Q10. The demand for good X is given by the following
equation:
QX = 325 - PX – 1.5 PW + 1.25 PG + 0.8 PY - 0.1 M
where
QX is the number of X sold per week; PX, PW, PG, PY are the
prices of the respective goods and M is the average monthly
income.
Currently PX = 200, PW = 50, PG = 80, PY= 125, and M = 2000.
(a) Should PX be increased...
The inverse demand function for a medication is p = 10000 - 0.5Q, where p is...
The inverse demand function for a medication is p = 10000 -
0.5Q, where p is the market price and Q is quantity demanded
MC = 100 + 0.05Q.
What is the competitive market price and quantity in this
market, and producer and consumer surplus and social
welfare?
Suppose production creates an externality. You can assume
marginal external costs are simply MEC = 400. Based on this
information, what is your estimate for a regulated market outcome
where marginal social...
The demand equation for video games is given by x = 320 − 10p where x...
The demand equation for video games is given by x = 320 − 10p
where x is the number of video games and p is in dollars. Find the
value of p that maximizes the total revenue.
The demand for good x is given as Qd: Qd = 1000 – 5Px – 0.5I...
The demand for good x is given as Qd:
Qd = 1000 – 5Px – 0.5I – 10Py + 2Pz –
3Pc
Where, Qd = quantity demanded of good
x (in thousand units)
Px = price of good x
I = consumer incomes (in thousand)
Py = price of good y
Pz = price of good z
Pc = price of good c
If consumer incomes are 30 (in thousand), price of good y is...
The demand for good x is given as Qd: Qd = 1000 – 5Px – 0.5I...
The demand for good x is given as Qd:
Qd = 1000 – 5Px – 0.5I – 10Py + 2Pz –
3Pc
Where, Qd = quantity demanded of good
x (in thousand units)
Px = price of good
x
I = consumer
incomes (in thousand)
Py = price of good
y
Pz = price of good
z
Pc = price of good
c
If consumer incomes are 30 (in thousand), price of good y is...
1. (a) The demand and supply equations for a good (X) are given by Qd= 4000...
1. (a) The demand and supply equations for a good (X) are given
by Qd= 4000 – 25p and Qs = -2000 + 35P respectively, where P =
price.
(i) Draw the demand and supply curves for good X on a graph.
(ii) Find the equilibrium price and quantity.
(iii) The government imposes a specific sales tax of R20 per
unit on good X. Show the resulting effect on the graph and find the
new equilibrium price and quantity.
(iv)...
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