Suppose that the supply of specialty workstation laptops is represented by QS = 1,000 + P, where
Question:
a. Now suppose that the demand for the laptops is QD = 9,000 – P – 0.05I, where I is income. What are the current equilibrium price and quantity if income is $100,000?
b. Suppose that income falls to $80,000. What is the new equation for the demand?
c. What will be the new equilibrium price and quantity after the income increase?
d. Is the laptop workstation a normal or an inferior good? Answer the question using a partial derivative.
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a If income is 100000 demand is Q D 90000 condition P 005100000 4000 P Th...View the full answer
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Related Book For 
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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