Consider the following demand equation for a good X.
Qx=30,000-300Px+200Py-Pz+0.5i
Where Px=$40, Py=$30 ,Pz=$10 and i=$100,000.
1. Does X obey the Law of Demand? Explain
2.Is X a normal good or inferior.Explain.
3.Are goods X and Y substitutes or complements? Explain.
4. IS good X a necessity or a luxury? explain.
5. Caculate the price elasticity for good X
6.Would revenues from sales of good x go up or down if we raise the price of X
Please explain it step by step!!!!!!!!!!!!!!!!!!! with calculate step. i need to know how to deal with the same type question~ TY
Consider the following demand equation for a good X.Qx=30,000-300Px+200Py-Pz+0.5iWhere Px=$40, Py=$30 ,Pz=$10 and i=$100,000.1. Does X obey the Law of Demand? ExplainYes.The law of demand…
