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28 Sep 2019
The generalized demand and supply functions for good X are
Qd = 10 2Px  4P_{Y} + M Qs = 10 + 2P_{X}
Where:
Q_{D} = quantity demanded of good X
P_{X} = price of good X
M = consumer income
P_{Y} = price of good Y
Q_{S} = quantity supplied of good X
P_{X} = price of good X
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 P_{Y} = $4 and M = $600?
d. Use the demand function you found in part c. and solve for the equilibrium price (P_{o}) and the equilibrium quantity (Q_{o}).
e. Find the inverse demand function and the inverse supply function.
f. Sketch this market.
The generalized demand and supply functions for good X are
Qd = 10 2Px  4P_{Y} + M Qs = 10 + 2P_{X}
Where: Q_{D} = quantity demanded of good X P_{X} = price of good X M = consumer income P_{Y} = price of good Y 
Q_{S} = quantity supplied of good X P_{X} = price of good X

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 P_{Y} = $4 and M = $600?
d. Use the demand function you found in part c. and solve for the equilibrium price (P_{o}) and the equilibrium quantity (Q_{o}).
e. Find the inverse demand function and the inverse supply function.
f. Sketch this market.
Anne Gillian DueroLv10
28 Sep 2019