answer e-i Use the following additional information: the price of a related product, Y, is P41.25; theaverage consumer's income is P12,000; advertising expenditure is P2,500; the price of productZ is P90; and the cost of production is P1,200. There are 30 identical buyers and 50 identicalsellers in the market for product X.A. Is product X a normal or an inferior product? Justify.B. How are product X and product Y related for the buyer? Explain.C. On the part of the seller, what kind product Z is?D. Using the market demand function, what is Px that will make all the buyers stoppurchasing this product? Round-up to two decimals.E. What is the interpretation of the parameter a of the market demand function?F. What is the interpretation of the parameter b of the market demand function?G. What is the interpretation of the parameter d of the market supply function?H. What is the market price of product X? Round-up to two decimals.I. What is the equilibrium quantity in this market?

Disclaimer :- as you posted multipart question we are supposed to solve the first 3 question only…

E. What is the interpretation of the parameter a of the market demand function? F. What is the interpretation of the parameter b of the market demand function? G. What is the interpretation of the parameter d of the market supply function?

E. What is the interpretation of the parameter a of the market demand function? F. What is the interpretation of the parameter b of the market demand function? G. What is the interpretation of the parameter d of the market supply function?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter3: Market Demand And Supply

Section: Chapter Questions

Problem 3SQ

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Question

answer e-i

Use the following additional information: the price of a related product, Y, is P41.25; the
average consumer's income is P12,000; advertising expenditure is P2,500; the price of product
Z is P90; and the cost of production is P1,200. There are 30 identical buyers and 50 identical
sellers in the market for product X.
A. Is product X a normal or an inferior product? Justify.
B. How are product X and product Y related for the buyer? Explain.
C. On the part of the seller, what kind product Z is?
D. Using the market demand function, what is Px that will make all the buyers stop
purchasing this product? Round-up to two decimals.
E. What is the interpretation of the parameter a of the market demand function?
F. What is the interpretation of the parameter b of the market demand function?
G. What is the interpretation of the parameter d of the market supply function?
H. What is the market price of product X? Round-up to two decimals.
I. What is the equilibrium quantity in this market?

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