Eric Stevanus – 2201756600 -LB28

Individual assignment pertama:

1. The demand for good X is given by

Qxd = 6,000 – ½ Px - Py + 9Pz + 1/10 M

Research shows that the prices of related goods are given by Py = $6,500 and Pz = $100,
while the average income of individuals consuming this product is M = $70,000.

a. Indicate whether goods Y and Z are substitutes or complements for good X.

Y are Complements, since the Price coeficcient are negatives, which means they
have a relationship where if Prices of y were to go up, the quantity of Qx would
decrease (complementary product, you can’t buy one of them without the other) .
And if prices of y were to go down, the quantity demanded of Qx will go up

While Z is a subsitutes products since the coefficient are positives, which means that
if the price of Z were to go up, the demand for Qx would also go up (consumers
prefer the substitue produt with a cheaper price) , and if the price of Z were to go
down, the demand for Qx would also go down.

b. Is X an inferior or normal good?

X is a normal good, where people with more income would buy the x, while people
with less income, would buy less of product x (coeficcient of M is positive).

c. How many units of good X will be purchased when Px = $5,230?

Qxd = 6,000 – ½ (5,230) – 6,500 + 9(100) + 1/10 (70,000)
= 6,000 – 2,615 – 6,500 + 900 + 7,000
= 4,785

d. Determine the demand function and inverse demand function for good X. Graph the
demand curve for good X
Demand function of x :
Qxd = 6,000 – ½ Px – 6,500 + 900 + 7,000
Qxd =7,400 – ½ Px

Inverse demand function :

Px =14,800 – 2Qxd