Question: 1 . The demand for good X is given by Research shows that the prices of related goods are given by = $ 5 ,

1. The demand for good X is given by
Research shows that the prices of related goods are given by = $5,900 and = $90, while the average income of individuals consuming this product is M = $55,000.
a. Indicate whether goods Y and Z are substitutes or complements for good X.
The Pz is -8, 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 = $4,910?

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