Suppose the price of good X falls and the consumption of good X increases. From this we can infer that X is a(n) (i)normal good. (ii)inferior good. (iii)Giffen good. O (i) only O (i) or (ii) only (iii) only (ii) or (iii) only
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- Q1: The demand for good X is given by Qx d = 6,000 − 1/2 Px − Py + 9 Pz + 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 = $80,000. a. How many units of good X will be purchased when Px = $5,230? The calculation should be handwrittenThe demand for good X is given by Qd = 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. B. Is X an inferior or a normal good? C. How many units of goods X will be purchased when Px = $5,230? D. Determine the demand function and the inverse demand function for good X. Graph the demand curve for good X.David's utility function for good X and Y is given by U (X,Y) =X2y3. Where px,py and I are the price of good X, price of good Y and consumer income respectively. E). Suppose david faces a new utility such as U(X, Y)=25x0.2 Y0.75 for consuming commodity X and Y, redo question b and c. Derive the demand function for good X and Y What combination of X and Y maximizes the consumer at I=100,px=4,and py=5 F). Suppose david faces another new utility function such as U (X, Y) =15xy2 for consuming commodity X and Y,redo question b and c Derive the demand function for good X and Y What combination of X and Y maximizes the consumer at I=100,px=4,and py=5
- Q1.14 Utility from consuming a good is understood by economists to mean; (a) how often we consume the good.(b) how much satisfaction or benefit we get from consuming the good.(c) how much it costs to buy the good.(d) how we best use the good. Q.1.15 The marginal utility of a good or service declines as one more unit is consumedbecause:(a) supply slopes upwards.(b) consumers are constrained by income.(c) of the law of diminishing marginal utility.(d) prices move with demand.Assume a piece of jewelry and 2 consecutive drops in its price. Also consider Alia’s demand to be relative elastic in the price range from ?1 to ?2, and that she perceives jewelry as a Giffen good in the price range from ?2 to ?3. Draw her price-consumption curve with well-behaved preferences. Clearly label your graph.Alexi has a budget of $21 to spend on toaster and breads. He does not directly gain any utility from owining a toaster but for every slice of toasted bread he consumes he gain 2 units of utility, that is if he owns a toaster. Without the toaster, he gain 0 units of utility from consuming plain bread. Suppose the toaster has inferior quality and will break after toasting only 10 slices, then Alexi needs to buy a new one. The current market price for cheap toaster is $5 and the price for a single slice of bread is $1. Assume that Alexi aims to maximize consumer surplus. In a graph, draw total utility as a function of number of toasted slices, assuming that Alexi buys 1 toaster.
- Alexi has a budget of $21 to spend on toaster and breads. He does not directly gain any utility from owining a toaster but for every slice of toasted bread he consumes he gain 2 units of utility, that is if he owns a toaster. Without the toaster, he gain 0 units of utility from consuming plain bread. Suppose the toaster has inferior quality and will break after toasting only 10 slices, then Alexi needs to buy a new one. The current market price for cheap toaster is $5 and the price for a single slice of bread is $1. Assume that Alexi aims to maximize consumer surplus. Find Alexi's income-consumption curve for slices of bread for incomes between $0 and $21, assuming a price of $1 per slice.Which of the ff. is correct with regards to the demand curve? A. If the price of the good increases, the demand curve for the good will shift to the left B. If the price of the good increases, the consumers have the incentive to look for substitutes, thus, the quantity demanded and its price are inversely related C. Income of the consumers is written on the vertical axis D. Varying preferences of the consumers is reflected in the demand curve and is written on the horizontal axisPlease 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…
- Suppose X and Y are substitutes. If the price of Y increases, the demand for X will most likely _______, and the quantity demanded of X will also _______. 1) increase, increase 2) increase, decrease 3) decrease, increase 4) decrease, decrease 5) None of the above. Q19 Suppose X is a normal good. If the income increases, the demand for X will ______. 1) increase 2) decrease 3) stay the sameThe demand for good X is given by Qxd = 6,000 − 1/2 Px − Py + 9 Pz + 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. b. Is X an inferior or 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.Suppose the demand for good X is ln Qxd=21-0.8lnpx-1.6lnpy+6.2lnM+0.4lnAx. So, good X and Y are??? a. Complements b. Normal goods c. Substitute d. Inferior goods