Qd = 1000 -30*P -0.05*Y + 1*PB Qs = 20 + 10*P -3*W Variable definitions: Qd = quantity demanded of good A; Qs = quantity supplied of good A; P = price of good A; Y = income of the consumer = 1,000; PB = price of good B = 10; W = wage rate = 20 %3D

Qd = 1000 -30P -0.05Y + 1PB Qs = 20 + 10P -3*W Variable definitions: Qd = quantity demanded of good A; Qs = quantity supplied of good A; P = price of good A; Y = income of the consumer = 1,000; PB = price of good B = 10; W = wage rate = 20 %3D

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 6E

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Question

Do the equations state that good A is a substitute for good B? Yes or no. Defend your answer.

Qd = 1000 -30*P -0.05*Y + 1*PB
Qs = 20 + 10*P -3*W
Variable definitions: Qd = quantity demanded of good A; Qs = quantity supplied of good A; P=
price of good A; Y = income of the consumer = 1,000; PB = price of good B = 10; W = wage rate
= 20

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