Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where
P_Y= $50.00 and I = $60,000, what is the equation of the demand curve for X?

Question

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, what is the equation of the demand curve for X?

Quizplus · Accepted Answer

To derive the demand curve for X, we need to hold all other variables constant and solve for X: Q_X = 5,000 - 250P_X +120P_Y +.04I Substituting the given values: Q_X = 5,000 - 250P_X + 120(50) + 0.04(60,000) Q_X = 5,000 - 250P_X + 6,000 + 2,400 Simplifying: 300P_X = 13,400 Q_X = 13,400/300 = 44.67 Therefore, the demand curve for X is Q_X = 13,400 - 250P_X.

Given the Demand Function QX = 5,000 - 250PX +120PY

Given the Demand Function Q_X = 5,000 - 250P_X +120P_Y