Demand function and inverse demand function for good

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Reference no: EM131173324

The demand for good x is given by Qdx=6,000-1/2 Px - Py + 9Pz + 1/10M

Research shows that the prices of related goods are given by Py = $6500 and Pz = $100, while the average income of individuals consuming this product is M = $70,000.

a. Indicate whether goods Y and Z are subsitutes or complements for good X and why? Please show all work.

b. Is X an inferior or a normal good? Why? Show all work.

c. How many units of good X will be purchased when Px = $5,230? Please show all work

d. Determine the demand function and inverse demand function for good X, graph the demand curve for good X. Please show all work.

Reference no: EM131173324

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