The weekly demand for Kelewele among the 2018 batch of MBA students at UPSA is Qdx = 900 – 10Px + 0.2I + 5Py – 4Pz, Where Qdx is the quantity demanded of Kelewele, Px is the price of Kelewele per lb, I is the consumer income in Ghana Cedis, Py and Pz are the prices of two goods that are related to Kelewele Required: (a) Based on the demand function above, is Kelewele a normal good or an inferior good? (b) Based on the demand function above, what is the relationship between Kelewele and good Y? (c) Based on the demand function above, what is the relationship between Kelewele and good Z?
The weekly demand for Kelewele among the 2018 batch of MBA students at UPSA is Qdx = 900 – 10Px + 0.2I + 5Py – 4Pz, Where Qdx is the quantity demanded of Kelewele, Px is the price of Kelewele per lb, I is the consumer income in Ghana Cedis, Py and Pz are the prices of two goods that are related to Kelewele Required: (a) Based on the demand function above, is Kelewele a normal good or an inferior good? (b) Based on the demand function above, what is the relationship between Kelewele and good Y? (c) Based on the demand function above, what is the relationship between Kelewele and good Z?
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 17SQ
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Question
The weekly demand for Kelewele among the 2018 batch of MBA students at UPSA is Qdx = 900 – 10Px + 0.2I + 5Py – 4Pz, Where Qdx is the quantity demanded of Kelewele, Px is the price of Kelewele per lb, I is the consumer income in Ghana Cedis, Py and Pz are the prices of two goods that are related to Kelewele
Required:
(a) Based on the demand function above, is Kelewele a normal good or an inferior good?
(b) Based on the demand function above, what is the relationship between Kelewele and good Y?
(c) Based on the demand function above, what is the relationship between Kelewele and good Z?
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