What is the relationship between good x and y

Reference no: EM13223852

1. You have the following information about good X and good Y:

Income elasticity of demand for good X: - 3

Cross - price elasticity of demand for good X with respect to the price of good Y:

2.a. What type of good is good X (i.e. is it a normal or inferior good)?

b. What is the relationship between good X and Y (i.e. whether they are substitutes or complements)?

c. With the aid of a well-labeled diagram, show what happens to equilibrium price and quantity of good X, if the price of good Y increases.

Reference no: EM13223852

Questions Cloud

Calculate the economic life of the machine : The annual operating and maintenance costs for the machine are $15,000 at the end of the first year and are expected to increase at an annual rate of 2.5% in constant dollars. The salvage value is given by the expression S= $95,000-$5,000t.

Identify potential gaps in the product line : How the product positioning is aligned with McDonald's corporate strategy. Identify potential gaps in the product line or weaknesses in positioning.

A description of the paleolithic era : A description of the Paleolithic era- Events that transformed society from the Paleolithic era to the Neolithic era

What are some management characteristics : Innovative products Pricing Brands have inherent problems: Product features converge over time Price wars destroy margins Branding is expensive.

What is the relationship between good x and y : b. What is the relationship between good X and Y (i.e. whether they are substitutes or complements) c. With the aid of a well-labeled diagram, show what happens to equilibrium price and quantity of good X, if the price of good Y increases.

Discuss the legal, moral and ethical issues : Both big and small U.S. and European companies rely upon foreign companies for everything from software development to financial analysis. Discuss the legal, moral and ethical issues involved in off-shoring and outsourcing.

Explain what is the concentration of acetate ion : 0.8 moles of acetic acid (weak acid) is added to 1.25 liters of water and the pH is adjusted to 5.8. what is the concentration of acetate ion

Explain the flow of authority granted by the powers : Explain the flow of authority granted by the powers of a charter of a corporation.

How much does each firm produce and what are profits : CEMEX and Holcim are two cement manufacturers in Durham. They produce cement and sell it into a competitive world market at the fixed price of $60 per ton. Producing one ton of cement also produces one ton of air pollution that negatively impacts ..

User Account

All Pages