The generalized demand and supply functions for good

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The generalized demand and supply functions for good X are Qxd = 100 – 2PX + 0.01M + 8 PY - 4Pz Qxs = 50 + 3PX – 6PI + PT Where Qxd = quantity demanded of good X Px = price of good X M = consumer income PY = price of good Y Pz= price of good Z Qxs = quantity supplied of good X Px = price of good X PI = price of input I PT = price of technology T e. Is good X a normal good or an inferior good? How do you know? f. What is the demand function when M = $2,000, PY = $10 and PZ = $5? g. What is the supply function when PI = $10 and PT = $20? h. Solve for the equilibrium price (Po) and the equilibrium quantity (Qo).

Reference no: EM131172389

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