The general demand function for good A is $Q _ { d } = 1,200 - 6 P + 0.5 M - 10 P _ { B } + 4 \Im + 2 P _ { e } + 3 N$ where $Q _ { d }$ = quantity demanded of good A per month, P = the price of good A, M = average household income, $P _ { B }$ = price of related good B, $\Im$ = a consumer taste index, P_e = price consumers expect to pay next month for good A, and N = number of buyers in market for good.
a. Good A is a(n) ___________ good because the slope parameter on __________ is _________.
b. Goods A and B are ________________ because the slope parameter on ________ is _____________.
c. When P = $6, M = $40,000, $P _ { B }$ = $20, $\Im$ = 8, P_e = $2, and N = 10,000, quantity demanded of good A is ____________ units per month.

Question

The general demand function for good A is

Q _ { d } = 1,200 - 6 P + 0.5 M - 10 P _ { B } + 4 \Im + 2 P _ { e } + 3 N

where

Q _ { d }

= quantity demanded of good A per month, P = the price of good A, M = average household income,

P _ { B }

= price of related good B,

\Im

= a consumer taste index, P_e = price consumers expect to pay next month for good A, and N = number of buyers in market for good.
a. Good A is a(n) ___________ good because the slope parameter on __________ is _________.
b. Goods A and B are ________________ because the slope parameter on ________ is _____________.
c. When P = $6, M = $40,000,

P _ { B }

= $20,

\Im

= 8, P_e = $2, and N = 10,000, quantity demanded of good A is ____________ units per month.

Quizplus · Accepted Answer

The Answer of The general demand function for good A is $Q _ { d } = 1,200 - 6 P + 0.5 M - 10 P _ { B } + 4 \Im + 2 P _ { e } + 3 N$ where $Q _ { d }$ = quantity demanded of good A per month, P = the price of good A, M = average household income, $P _ { B }$ = price of related good B, $\Im$ = a consumer taste index, P_e = price consumers expect to pay next month for good A, and N = number of buyers in market for good. a. Good A is a(n) ___________ good because the slope parameter on __________ is _________. b. Goods A and B are ________________ because the slope parameter on ________ is _____________. c. When P = $6, M = $40,000, $P _ { B }$ = $20, $\Im$ = 8, P_e = $2, and N = 10,000, quantity demanded of good A is ____________ units per month.

The General Demand Function for Good a Is Qd=1,200−6P+0.5M−10PB+4ℑ+2Pe+3NQ _ { d } = 1,200 - 6 P + 0.5 M - 10 P _ { B } + 4 \Im + 2 P _ { e } + 3 NQd​=1,200−6P+0.5M−10PB​+4ℑ+2Pe​+3N

The General Demand Function for Good a Is $Q _ { d } = 1,200 - 6 P + 0.5 M - 10 P _ { B } + 4 \Im + 2 P _ { e } + 3 N$