A demand equation of a certain good is given by :
Q=-20P + 0.04Y + 4T + 3Pr
Where Q and P denote the quantity and price of the good, Y is income, T is taste, and Pr is the price of a related good.
a) Calculate Q when P=8, Y=1000, T=15, and Pr=30.
b) Is the related good, a substitute, or complementary good? Give a reason for your answer.
c) Find the value of P when Q=235, Y=8000, T=30, and Pr=25.
d) The exogenous variables are now fixed at Y=2000, T=10, and Pr=5. State the values of the slope and vertical intercept when the demand equation is sketched (drawn) with, 

(i) P on the horizontal axis and Q on the vertical axis;
(ii) Q on the horizontal axis and P on the vertical axis.

Answer rating: 100% (QA)

4 We have Q 20P 004Y 4T 3Pr a Q 208 0041000 415 330 Q 160 40 60 90 Q 3... View the full answer