10
4
points
The demand for good X is given by
Qxd=6,000-(1/2)Px - Py+9Pz+ (1/10)M
Research shows that the prices of related goods are given by Py = $6,500 and P? = $100, while the average income of
individuals consuming this product is M = $70,000.
a. Indicate whether goods Yand Z are substitutes or complements for good X.
Good Y is: a complement
Good Z is: a substitute
b. Is X an inferior or a normal good?
Good X is: a normal good
c. How many units of good X will be purchased when Px = $5,230?
4785
d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.
Instruction: Enter all values as integers, or if needed, a decimal rounded to one decimal place.
Demand function: 7400 - 5 Px
Inverse demand function: Px = 14800 - 2 Qxd
Instruction: Use the tool provided 'D' to graph the inverse demand curve from Qx = 0 to Qx = 6,000 (two points total).
Your Graph Score: 0%
16000
14000
12000
10000
Price of X
8000
6000
4000
Inverse Demand Function
2000
0
2000
4000 6000
8000
Quantity of X
D