1. Analyze the given assumptions very well and perform what is asked in each problem. Basic algebra is needed for number 1-3. 1.Suppose the generalized demand function for good X is : Q = 30-2Px + 8M + 1.5P, Q = the quantity demanded for good x Px P= the price of good X M = the average consumer income in thousand pesos P, the price of a related good a. Is good x normal or inferior? Why? b. Are goods x &r substitutes or complements? Why?

1. Analyze the given assumptions very well and perform what is asked in each problem. Basic algebra is needed for number 1-3. 1.Suppose the generalized demand function for good X is : Q = 30-2Px + 8M + 1.5P, Q = the quantity demanded for good x Px P= the price of good X M = the average consumer income in thousand pesos P, the price of a related good a. Is good x normal or inferior? Why? b. Are goods x &r substitutes or complements? Why?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter3: Market Demand And Supply

Section: Chapter Questions

Problem 16SQ

See similar textbooks

Similar questions

Given the two functions below: y=10e-0.5q and y=7ln5q Draw the two functions for the interval -1<q<3. From the diagram drawn identify which of the two functions represents the demand curve, supply curve and name the intercept(s) formed. Economically, it is said that equilibrium is established when the demand curve intercepts the supply curve. Hence or otherwise, determine the equilibritum price and quantity.
A TV channel has estimated the demand for its service to be givenby the following function: Q=9.83p-1.2A2.5Y1.6P0-1.4whereQ = monthly sales in unitsP = price of the service in $A = promotional expenditure in $’000Y = average income of the market in $’000P0 = price of ‘home movies’ in $ The current price of the TV channel is $60, promotional expenditure is$120,000, average income is $28,000, and the price of ‘homemovies’ is$45.Indicate whether the following statements are true or false, givingyour reasons and making the necessary corrections h. Current sales are over a million units a month. i. The demand curve for the channel is given by:Q=9.83p-1.2j. The channel’s sales are more affected by the price of ‘home movies’ than by the price of its own service.k. If the channel increases its price this will reduce its profit.
1. Suppose consumers will demand 40 units of product when the price is $12 and 25 units when the price is $18 each. 6). Find a linear equation for the: 0. Demand curve. (ii). Demand function. (b). Find the price per unit when 30 units are demanded. 2 The demand Curve for a prodtuct is p= 60-0.00OSC where p iE the price per unit. and q is the number of units demancec. How many units must be sold to achieve sales of $1.200,000?
Suppose the demand for good x is given by the following equation: Qdx = 60 - 40Px + 21 - 30Py where Qax is the quantity demanded of good x, Px is the price of good x, I is income, and Py is the price of good y. a. On a clearly labeled graph, plot the demand curve assuming Py is $6 and income is $700. Remember to identify and label the intercept points. Label your curve D1. b. On the same graph, plot the demand curve assuming Py is $6 and income is $900. Remember to identify and label the intercept points. Label your curve D2.
When sold for $790.00, a certain desktop has an annual supply of 129.5 million computers and an annual demand of 155.5 million computers. When the price increases to $865.00, the annual supply increases to 147.5 million computers, and the demand drops to 134.5 million computers. NOTE: Round slope and vertical intercept to 4 decimal places and use those rounded values to the end. (a) Assuming that the supply and demand equations are linear, find the supply and demand equations. Supply Equation p = Demand Equation p = esc (Note: The equations should be in the form p = mq + b where p denotes the price (in dollars) and q denotes the quantity (in billions). The slope and y-intercept should be accurate to 4 decimal places). (b) Find the Equilibrium price and quantity. Equilibrium price p = Equilibrium quantity q = 9- F2 A (Note: The equilibrium price should be accurate to 2 decimal places and quantity should be rounded to the nearest whole number, and the equilibrium price should include a…
a good is normal, then an increase in the price of the good will lead to which of the following to be true for this good? (Assume that there are only two goods, the individual's preferences lead to well-behaved preferences with strictly convex indifference curves and an interior solution for all budgets). Let SE = substitution effect, IE = income effect) (a) The magnitude of the IE for this good must be larger than the magnitude of the SE (b) The magnitude of the SE for this good must be larger than the magnitude of the IE (c) The good could be a Giffen good d) The good must be an ordinary good ( (e) None of the above
Could someone explain the easy way to find the partial derivative in these problems? Suppose the demand equation is: Q = 120 - 0.75p. What is the price elasticity of demand if the price is $60 per unit and output is 75 units? The price elasticity of demand is (Enter a numeric response using a real number rounded to two decimal places.)
Assume the demand function for good X can be written as: QX = 30 - 3PX + 2PY + 0.2I Where PX is the price of good X PY is the price of good Y I is the consumer income. a) Based on the demand curve above, is X a normal or inferior good? b) Based on the demand curve above, what is the relationship between good X and good Y? c) What is the equation of the demand curve if consumer incomes are $40,000 (use $40, income in thousands) and the price of good Y is $35?
2) (20) Demand for widgets is a linear function of price. If the price of Widgets is set to $20, 4200 widgets will be sold. If the price is raised to $25, demand falls to 3600 widgets. a) (4) Find the demand function D(x), where x represents the price and D(x)= y represents the demand for widgets. b) (2) Describe the meaning of the slope of the demand function, in the context of the price, and demand for widgets. c) (2) Find the revenue function R(x), which is price times the demand. (2) Graph the Revenue Function using Desmos, or any other graphing utility of your choice; note the scale on the axes. If your graph doesn't fit on the graph, your Revenue function is probably incorrect. Hint Ask Questions! Email! 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 y -5 20 25 30 35 40 45 50 55 60 65 e) (2) Give the meaningful domain for the revenue function. Use the criteria that one would not price widgets so low that one would pay to get rid of them. 5 10 15 (2)Calculate the…
The market for tickets to this year’s football games consists of two groups of consumers. Let x1denote the demand for tickets by fans of one of the visiting teams, and let x2 denote the demand for tickets by home fans who enjoy the spectacle. Let the price of the ticket be denoted by px, and suppose that everyone who purchases a ticket pays the same price. The demand functions of the two consumer groups has been determined as follows. There are 15,000 seats available in the stadium (thus X=15). x1= 12 −px/2 x2= 6− px/4 (a) What is the market demand function for football tickets, as a function of px? (Remember that demand cannot be negative for either consumer group.) (b) If the school was required to sell tickets to visitors at the same price as home team Students, what would the price for tickets be? (c) Suppose that, at the ticket price chosen by the university, the price-elasticity of demand for…
The demand for a 12-ounce bottle of sparkling water is given in the table. Demand Schedule for Sparkling Water in 12-ounce Bottles Price (dollars per bottle) 2.29 2.69 3.09 3.49 3.89 4.29 Demand (million bottles) 25 9 3 2 1 0.5 (a) Write the function for the exponential model that gives demand in million bottles, as a function of price per bottle p, with data from 2.29 ≤ p ≤ 4.29. (Round all numerical values to two decimal places. Be sure you use the correct input variable p.) D(p) = Does the model indicate a price above which consumers will purchase no bottles of water? The model is exponential and ---Select--- ✓the horizontal axis. Therefore there is ---Select--- above which consumers will not purchase water. (b) What quantity of water will consumers purchase when the market price is $3.87? (Round your answer to two decimal places.) million bottles (c) Calculate the amount that consumers willing and able to spend to purchase the quantity found in part (b). (Round your answer to one…
The equation below represents a linear demand curve. Use the grid (See image) for your plots. Writeall derivations in the spaces under the corresponding question. l) Plot the demand function on the top set of axes: Qx = 80000 - 100P x . The price function is the inverse of the demand function. What is this inverse?