Question: 1 . The demand for good X is given by Research shows that the prices of related goods are given by = $ 5 ,
The demand for good X is given by
Research shows that the prices of related goods are given by $ and $ while the average income of individuals consuming this product is M $
a Indicate whether goods Y and Z are substitutes or complements for good X
The Pz is which indicates that it is negative. This means that if the price of good Z Pz increases, the quantity of good X Px decreases. Their behavior suggests that they are complementary since the increase in one causes the fall of the other.
b Is X an inferior or a normal good?
c How many units of good X will be purchased when $
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