Answer to Question #136610 in Microeconomics for Enoch Teye Mensah

Question

Create a demand function of international student studying abroad

Answer 1

Q_c,t = (P_c,t M_t. P_r,t P^e_c,t+i T)

Where

Q_c,t = the quantity purchased of good or service c in period t

P_c,t = the price of good or service c in period t.

M_t = consumer (students') incomes in period t

P_r,t = the price of related goods in period t

P^e_{c, t+i} = the expected price of good or service c in period t+i

T = taste and patterns of consumers.