Question

Problem 4 The demand for good X is given by $Q_x = 6,000 - \frac{1}{2}P_x + P_y - 9P_z + \frac{1}{4}M$ Research shows that the prices of related goods are given by $P_y = \$5,000$ and $P_z = \$250$, while the average income of individuals consuming this product is $M = \$65,000$. a. Indicate whether goods Y and Z are substitutes or complements for good X. Due to the negative being in present in the equation, the relationship from the price of good y to the quantity of good X. For that, good y increases and the quantity demand for good x decreases. Which means that the good y is a complement for good x. b. Is good X an inferior or a normal good? Since c. How many units of good X will be purchased when $P_x = \$10,000$? d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.

          Problem 4
The demand for good X is given by $Q_x = 6,000 - \frac{1}{2}P_x + P_y - 9P_z + \frac{1}{4}M$
Research shows that the prices of related goods are given by $P_y = \$5,000$ and $P_z = \$250$, while
the average income of individuals consuming this product is $M = \$65,000$.
a. Indicate whether goods Y and Z are substitutes or complements for good X. Due to the
negative being in present in the equation, the relationship from the price of good y to the
quantity of good X. For that, good y increases and the quantity demand for good x decreases.
Which means that the good y is a complement for good x.
b. Is good X an inferior or a normal good? Since
c. How many units of good X will be purchased when $P_x = \$10,000$? 
d. Determine the demand function and inverse demand function for good X. Graph the demand
curve for good X.

Problem 4
The demand for good X is given by Qx = 6,000 - (1)/(2)Px + Py - 9Pz + (1)/(4)M
Research shows that the prices of related goods are given by Py = $5,000 and Pz = $250, while
the average income of individuals consuming this product is M = $65,000.
a. Indicate whether goods Y and Z are substitutes or complements for good X. Due to the
negative being in present in the equation, the relationship from the price of good y to the
quantity of good X. For that, good y increases and the quantity demand for good x decreases.
Which means that the good y is a complement for good x.
b. Is good X an inferior or a normal good? Since
c. How many units of good X will be purchased when Px = $10,000?
d. Determine the demand function and inverse demand function for good X. Graph the demand
curve for good X.

Added by Olga L.

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