2
answers
0
watching
562
views
4 Feb 2018
Consider the general demand function: Qd= 680-9P+0.006M-4Pr, where P is the price of the good, M is income, and Pr is the price of a related good, R. a) Interpret the slope parameters of the demand function b) is the good inferior? why? c) Is the good R a substitute for the good? why? d) derive the equation for the demand function when M= $15,000 and Pr=20 e) Using the equation derived in d, calculate the quantity demanded at price p= $30. Give an interpretation of this quantity
Consider the general demand function: Qd= 680-9P+0.006M-4Pr, where P is the price of the good, M is income, and Pr is the price of a related good, R. a) Interpret the slope parameters of the demand function b) is the good inferior? why? c) Is the good R a substitute for the good? why? d) derive the equation for the demand function when M= $15,000 and Pr=20 e) Using the equation derived in d, calculate the quantity demanded at price p= $30. Give an interpretation of this quantity
glorysoft2Lv10
1 Oct 2022
Lelia LubowitzLv2
5 Feb 2018
Already have an account? Log in