Question: I need the work shown on questions 7 and 8 that are not answered Use the following general linear demand relation to answer questions 4

I need the work shown on questions 7 and 8 that are not answered

I need the work shown on questions 7 and 8 that are

Use the following general linear demand relation to answer questions 4 through 8: Qa - 250 - 3P - 0.002M + 4PR where P is the price of good X. M is income, and PR is the price of a related good, R. 4. Is good X normal or inferior? (5pts) Good X is Normal. 5. Is the related good R a substitute for good X or a complement for good X? (5pts) The related good R is a substitute for good X 6. What is the demand function when M= $50,000 and PR = $7? Show your work. (5pts) Qa = 250-3P-0.002(50000)+4P(7) = 250-3P-100+28P = 178-3P If M= $50,000 and PR = $7, and the supply function is Q, - 26 + 5, what is the market price and what is the market output? Show your work. (5pts) If the government sets the price at $20, will that result in a surplus or a shortage? What will be the size (in units) of the surplus or shortage? Show your work. (5pts)

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