Suppose the generalized demand function for good X is Qd=60-2Px+0.01M+7Pr a.Suppose M=40,000 and Pr=20 what is the direct demand function b.Suppose the supply function is Qs=-600+10Px, what are the equilibrium price and quantity? c.What happens to equilibrium price and quantity if other things remain the same as in part (b) but income increases to 52,000? d.What happens to equilibrium price and quantity if other things remain the same as in part (b) but the price of the related good decrease to 14? e.What happens to equilibrium price and quantity if other thing remain the same, income and price of related goods are at their original levels and supply shifts to Qs=-360+10Px?
Suppose the generalized demand function for good X is Qd=60-2Px+0.01M+7Pr a.Suppose M=40,000 and Pr=20 what is the direct demand function b.Suppose the supply function is Qs=-600+10Px, what are the equilibrium price and quantity? c.What happens to equilibrium price and quantity if other things remain the same as in part (b) but income increases to 52,000? d.What happens to equilibrium price and quantity if other things remain the same as in part (b) but the price of the related good decrease to 14? e.What happens to equilibrium price and quantity if other thing remain the same, income and price of related goods are at their original levels and supply shifts to Qs=-360+10Px?
Chapter4: Markets In Action
Section: Chapter Questions
Problem 6SQ
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Suppose the generalized
a.Suppose M=40,000 and Pr=20 what is the direct demand function
b.Suppose the supply function is Qs=-600+10Px, what are the
c.What happens to equilibrium price and quantity if other things remain the same as in part (b) but income increases to 52,000?
d.What happens to equilibrium price and quantity if other things remain the same as in part (b) but the price of the related good decrease to 14?
e.What happens to equilibrium price and quantity if other thing remain the same, income and price of related goods are at their original levels and supply shifts to Qs=-360+10Px?
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