Assume that product X is quantified in the following manner: QDX= -2PX + 0,5PY - 0,2PZ + 1,2I. In which: QDX is a quality of product X PX is the price of product X PY is the price of product Y PZ is the price of product Z I is the entry of the center of the user Make an argument to determine whether the demand curve for product X will change and how it will change for each of the following cases: i. Consumer income increases ii. The price of product X decreases iii. The price of product Y increases iv. The price of product Z decreases

Assume that product X is quantified in the following manner: QDX= -2PX + 0,5PY - 0,2PZ + 1,2I. In which: QDX is a quality of product X PX is the price of product X PY is the price of product Y PZ is the price of product Z I is the entry of the center of the user Make an argument to determine whether the demand curve for product X will change and how it will change for each of the following cases: i. Consumer income increases ii. The price of product X decreases iii. The price of product Y increases iv. The price of product Z decreases

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.13P

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Suppose the demand function for product X is estimated by the equation: QDX= -2PX + 0,5PY - 0,2PZ + 1,2I. In there:QDX is the quantity demanded of product XPX is the price of product XPY is the price of product YPZ is the price of product ZI is the average income of consumersa/ Please make an argument to determine the relationship between two products X and Y, X and Z.b/ Please make an argument to determine whether product X is an ordinary good or a low-end good
Explain how a demand curve can be derived by observing the outcomes of price changes in the utilitymaximization model.
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