Suppose the demand for DVD players (good X) is given by
Qd= 1200-1/2Px+1/4Py-8Pz+1/10M
Are goods Y and Z substitutes or complements of good x? Is good X an inferior or normail good? What is quantity demanded of good X, if research shows that Px= 500, Py= 400, Pz= 10, M=10000? Determine the demand function and the inverse demand function for good X. Draw the Demand Curve. If the price level is $3440, what is the consumer surplus? (Please explain each step!)
Suppose the demand for DVD players (good X) is given by
Qd= 1200-1/2Px+1/4Py-8Pz+1/10M
Are goods Y and Z substitutes or complements of good x? Is good X an inferior or normail good? What is quantity demanded of good X, if research shows that Px= 500, Py= 400, Pz= 10, M=10000? Determine the demand function and the inverse demand function for good X. Draw the Demand Curve. If the price level is $3440, what is the consumer surplus? (Please explain each step!)
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Related questions
The generalized demand and supply functions for good X are
Qd = 10 -2Px - 4PY + M Qs = 10 + 2PX
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Where: QD = quantity demanded of good X PX = price of good X M = consumer income PY = price of good Y |
QS = quantity supplied of good X PX = price of good X
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A. Are good X and good Y substitutes or complements? Why?
B. Is good X a normal good or an inferior good? Why?
C. What is the demand function when PY = $4 and M = $600?
d. Use the demand function you found in part c. and solve for the equilibrium price (Po) and the equilibrium quantity (Qo).
e. Find the inverse demand function and the inverse supply function.
f. Sketch this market.
