The general demand function for a good good a is is good a, Ask an Expert

Economics

The general demand function for a good, Good A, is:

QD = 800 â?" 5*P + 0.02*M + 6*PR + 3*T + 5*PE + .4*N

Where

QD = quantity demanded of Good A per month

P = the price of Good A

M = average household income

PR = the price of a related good, weâ??ll call it Good B

T = a consumer taste index

PE = the price consumers expect to pay next month for Good A

N = the number of buyers in the market

Explain:

Is Good A a normal good or an inferior good? How do we know exactly?

Are Good A and Good B complements or substitutes? How do we know exactly?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9292090

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question as explained in the chapter economic efficiency is

Question: As explained in the chapter, economic efficiency is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production. Using this explanation of e ...

Question thinking about famous corporate scandals like

Question: Thinking about famous corporate scandals like Enron and WorldCom, some analysts have suggested that these are the tip of the iceberg and that there are many other large corporations whose problems have not yet ...

Quesiton as we come to the end of this course i would like

Quesiton: As we come to the end of this course, I would like you to reflect on last eight weeks and compare what you knew about our economic system at the beginning and what you know now. What are your major takeaways an ...

Question how is poverty measured in the us is this an

Question: How is poverty measured in the US? Is this an effective measurement? What are some of the issues that the government faces in trying to move people out of poverty? What are the principle challenges faced in mov ...

Question firm z operating in a perfectly competitive market

Question: Firm Z, operating in a perfectly competitive market, can sell as much or as little as it wants of a good at a price of $16 per unit. Its cost function is C = 50 + 4Q + 2Q^2. The associated marginal cost is MC = ...

Question this question is about the baumol-tobin model for

Question: This question is about the Baumol-Tobin model. For this question, state your answers in terms of income (Y), money holdings (M), interest (i), Number of trips to the bank (N), and cost of trips to the bank (F) ...

Question the state of florida sold a total of 361 million

Question: The State of Florida sold a total of 36.1 million lottery tickets at $1 each duringthe first week of January 2006. As prize money, a total of $41 million will be distributed($1,952,381 at the beginning of each ...

Question 1 suggest two regulations that the reserve bank of

Question: 1. Suggest two regulations that the Reserve Bank of New Zealand could introduce to reduce the risk of asset price bubbles in the future. 2. Write a note on the prospects for economic growth in New Zealand for t ...

Question propose two separate behaviors other than

Question: Propose two separate behaviors other than government purchases that could offset the effects of the military spending reduction on total planned expenditure. Be specific in your examples. The response must be t ...

Question suppose that the tax ti paid by individual i is

Question: Suppose that the tax (Ti) paid by individual i is the following function of his or her income (Xi): Ti = 0.1(Xi - 2000) = 0.1Xi - 200 (i.e. there is a flat tax of 10% on all income over 2000). You know that tot ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert