Question

Explain the relationship between product X, product Y and product Z or the properties of each according to the following statements
a. Cross price elasticity between X and Y is -4
b. Cross price elasticity between X and Y is 12
c. Cross price elasticity between Y and Z is 0
d. Cross price elasticity between X and Z is 0.6
e. The demand price elasticity for product X is -4
f. The demand price elasticity for product y is - 0.4
g. The Income elasticity for product X is -4
h. The Income elasticity for product Y is 0.4
i. The Income elasticity for product Z is 4

Answer 1

If you are expecting someone to do your work for you, you came to the wrong place. Someone here might be able to help if YOU post what YOU THINK the answers are and your reasons why.

Answer 2

suppose the demand for product X is estimated as:

Qdx = 7,000 – 30Px + 20Py – 18Pz – 0.5M

Where,
Px = Price of product X
Py = Price of product y
Pz = Price of Product Z
M = Income.

Assume Px = 16, Py = 10, Pz = 8 and M = RM2000

a)How many units of Product X will be purchased?
b)Derive the demand function for Product X.
c)Explain the relationship between Product X and Y.
d)Explain the relationship between Product X and Z.
Is Product X a normal or inferior good? Why?