A. Given the demand function 𝑄𝑑 = 15 − 0.2𝑃, find quantity demanded when price is GH¢ 2.00, GH¢ 5.00, GH¢ 7.00, and GH¢ 10.00. Present your results in a table.
B. Demand function for good X is given as Qdx = 6 – 0.2Px + 0.28Pz – 0.45Py
where Qdx is quantity demanded for good X, Px is price of good X, Py and Pz are
prices of related goods. Y is good Y and Z is good Z.
i. What type of good is Y? Explain your answer. ii. What type of good is Z? Explain your answer.
A)
B) Given that the demand for food X is
"Qd_x=6-0.2P_x+0.28P_z-0.45P_y"
i) Good Y is a complementary good. This is because the cross elasticity is negative i.e. -0.45
ii) Good Z is a substitute good. The cross elasticity is positive, i.e. 0.28
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