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
2 answers
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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?
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?
1 answer