Answer to Question #296411 in Economics of Enterprise for B blessed

Question

Given the following market demand function of commodity X.

Qx=F[Px, Py, Pz, I, T, A]

Where:

Px= Price of commodity

Py= Price of substitute commodity Y

Pz= Price of commodity Y, which is

complement of X

I= Level of per capital income of

customers

T=Taste and preference of consumers

A=Advertising expenditure by a firm

producing X

How will be the consumer demand for a commodity X change?

a. If price of commodity X rises

b. If price of substitute good Y rises

c. If price of complement commodity Z

falls

d. Per capital income of the consumer

rises

e .The firm production X increases it's advertisement expenditure

Answer 1

a) Demand will reduce

b) Demand will increase

c) Demand will increase

d) Demand will increase

e) Demand increases