Categories
Economics

Demand Questions

  1. Demand questions
  • a. An increase in demand.
  • b. A decrease in demand.
  • c. An increase in demand.
  • d. An increase in demand.
  • e. A decrease in demand.

2. Supply questions

  • a. An increase in supply.
  • b. A decrease in supply.
  • c. A decrease in supply.
  • d. A decrease in supply.
  • e. An increase in supply.

3.

  • a. Normal good- the demand for good x increases with an increase in income
  • b. X and Y are substitute goods that is because in increase in the price of y leads to an increase in demand for x.
  • c. X and Z are complementary goods; that is because the coefficient for Z is negative meaning that an increase in the price of Z leads to a decrease in demand for X.
  • d. Qd= 500-.5Px+.5(30,000)+ 10(10)-2(20)

=500- .5px+15,000+100-40

= 500- .5px+15,060

 

4.

  • a. Complementary goods- an increase in price z leads to an increase in supply of x
  • b. Substitute goods
  • c. 500
  • d. 1000