Suppose the demand for good X is given by Q d x = 10 + a x P x + a y P y + a M M

Question

Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive, then:
A. goods y and x are complements.
B. goods y and x are inferior goods.
C. goods y and x are normal goods.
D. goods y and x are substitutes.

Suppose the supply of good X is given by QSx = 10 + 2Px. How many units of good X are produced if the price of good X is 20?
A. 10.
B. 20.
C. 30.
D. None of the statements associated with this question are correct.

Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive, then:   goods y and x are complements.  goods y and x are inferior goods.  goods y and x are normal goods.  goods y and x are substitutes. Suppose the supply of good X is given by QSx = 10 + 2Px. How many units of good X are produced if the price of good X is 20?   10.  20.  30.  None of the statements associated with this question are correct.

Explanation / Answer

D. goods y and x are substitutes.

as positive ay denotes that demand of X increases as price of Y increases

D. None of the statements associated with this question are correct.

Qs = 10 + 2Px

Px=20

Qs = 10+2*20 = 50

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