What are the equilibrium price and quantity

Reference no: EM13187396

Suppose that the generalized demand function for good X is
Qd = 60 - 2Px + 0.01M + 7Pr

where
Qd = quantity of X demanded
Px = price of X
M = (average) consumer income
Pr = price of a related good R

a. Is good X normal or inferior? Explain.
b. Are goods X and R substitutes or complements? Explain.
Suppose that M = $40,000 and Pr = $20.
c. What is the demand function for good X?
Suppose the supply function is
Qs = -600+10Px
d. What are the equilibrium price and quantity?

e. What happens to equilibrium price and quantity if other things remain the same as in part d but income increases to $52,000?

f. What happens to equilibrium price and quantity if other things remain the same as in part d but the price of good R decreases to $14?

g. What happens to equilibrium price and quantity if other things remain the same, income and the price of the related goods are at their original levels, and supply shifts to Qs = -360+10Px?

Reference no: EM13187396

Questions Cloud

Personal and professional lives : When setting a Mission Statement and defining success for both personal and professional lives, "My/The definition of success is". Pls answer in 120 words or less and cite url or references if used.

Find out the type of inhibition for each inhibitor : Assuming the enzyme total is the same for each experiment determine Km and Vmax for each experiment. In addition by graphing the lineweaver burk plot determine the type of inhibition for each inhibitor.

What is the balanced equation for the magtrieve oxidation : What is the balanced equation for the Magtrieve Oxidation of 4-Cholorbenzyl alcohol to 4-chlorobenzaldehyde? If 1 mmol of 4-chlorobenzyl alcohol and 700 mg of Magtrieve are used

State chemical equation a mixture of benzoic acid : How do you write and balance this chemical equation a mixture of benzoic acid (C7H6O2 or C6H5COOH) and 4-t-butylphenol (CH3)3CC6H4OH

What are the equilibrium price and quantity : What are the equilibrium price and quantity e. What happens to equilibrium price and quantity if other things remain the same as in part d but income increases to $52,000 f. What happens to equilibrium price and quantity if other things remain the ..

Punishment is most effective in suppressing behavior : Punishment is most effective in suppressing behavior when it is

State what mass of a copper ore consisting : What mass of a copper ore consisting of 46% copper(I) sulfide must be mined in order to produce 1.0 x 10^3 kg (1.0 metric ton) of copper metal?

Criminal justice professional : Choose 2 of the philosphical approaches to ethical decision-making and write a 3-page paper contrasting the two approaches. The paper should include a definition and explanation of each approach, how the approaches may impact the criminal justice pro..

Find the equilibrum price of electricity : Some experts have suggested that of the total electricity consumed in the United States, 8 percent is used up by the internet. Thus an increased demand by consumers to surf the internet will the equilibrum price of electricity and the equilibrium ..

User Account

All Pages