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The demand for Good X is given by Qx = 4000-Px-2Py+4Pz +0.2M where Py is the price of good Y, Pz is the price of good Z, and M is income, if Py =$800, Pz = $200 and M= $5000 determine the following:

1. The inverse demand function for good X.

2. Whether good Y is a substitute or complement for good X. explain why.

3. Whether doog Z is a substitute or completement for good X. explain why

4. Whether good X is a normal or inferior good. explain why

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Kritika Krishnakumar
Kritika KrishnakumarLv10
28 Sep 2019
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Related questions

Suppose the demand for X is given by QXd = 50 - 4PX - 3PY - 5M + 3A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X. Based on this information, we know that good X is a

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