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The demand for good X is given by: Qdx= 1,200-1/2Px+1/4Py-8Pz+1/10M Research shows that the prices of related goods are give by Py=$5,900 and Pz=$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.

b. Is X an inferior or a normal good?

c. How many units of good X will be purchased when Px=$4,910?

d. Determine the demand function and inverse demand function for good X.

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9676883

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