(Answered) The estimated market demand of a commodity x is given as

Economics

The estimated market demand of a commodity X is given as Q=70-3.5P-0.6M+4Pz, where Q=Estimated units of X demanded, P=Price of the goods, M= Money income and Pz= Price of related goods.

Find out;

1. if Xis a normal good or an inferior good and explain;

2. Are commodities X and Z substitutes or compliments?

3. At P=10, M=30 and Pz=6, compute the estimate for own-price and cross elasticity

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Microeconomics, Economics

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