The demand for good X is given by

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.
b. Is X an inferior or a normal 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 goodX.

  • CreatedApril 18, 2014
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