Figure 7-1 Demand A P, D F Q, QUANTITY Refer to Figure 7-1 . When the price falls from P 2 to P 1 , consumer surplus a. increases by an amount equal to B+C. O b. decreases by an amount equal to C. O. increases by an amount equal to B. O d. decreases by an amount equal to B+C. PRICE

Figure 7-1 Demand A P, D F Q, QUANTITY Refer to Figure 7-1 . When the price falls from P 2 to P 1 , consumer surplus a. increases by an amount equal to B+C. O b. decreases by an amount equal to C. O. increases by an amount equal to B. O d. decreases by an amount equal to B+C. PRICE

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 3.4P

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INT BU BIC CH MU AG RA ations allery ia alytics D Question 11 Figure 3-1 Price 0 O A to B. OB to A. Refer to Figure 3-1. If the product represented is a normal good, a decrease in income would be represented by a movement from O D₁ to D2. B O D2 to D1. D₂ Demand, D₁ Quantity
Please written by hand solution The demand for good X is given by QXd = 6,000 - (1/2)PX - PY + 9PZ + (1/10)M Research shows that the prices of related goods are given by Py = $6,500 and Pz = $100, while the average income of individuals consuming this product is M = $70,000. a. Indicate whether goods Y and Z are substitutes or complements for good X. Good Y is: (Click to select) a substitute neither complement nor substitute a complement . Good Z is: (Click to select) a complement a substitute neither complement nor substitute . b. Is X an inferior or a normal good? Good X is: (Click to select) an inferior good neither a normal nor an inferior good a normal good . c. How many units of good X will be purchased when Px = $5,230? d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X. Instruction: Enter all values as integers, or if needed, a decimal rounded to one decimal place. Demand function: ( ) - ( ) PX…
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