Reference no: EM13214811
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 Pz = $100, while the average income of individuals consuming this product is M = $70,000.
a. Indicate whether goods Y and Z are substitutes or complements for good X.
Good Y is: (Click to select)a substituteneither complement nor substitutea complement
Good Z is: (Click to select)neither complement nor substitutea complementa substitute
b. Is X an inferior or a normal good?
Good X is: (Click to select)a normal goodneither a normal nor an inferior goodan inferior good
c. How many units of good X will be purchased when Px = $5,230?
d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.
Demand function: - PX
Inverse demand function: PX = - QXd
Instruction: Use the tool provided 'D' to graph the inverse demand curve from QX = 0 to QX = 6,000 (two points total).
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