Answer to Question #98603 in Microeconomics for Tracey

Question

The demand function for product X is Qd=600-20Px +0.02y-5pr the supply function is Qs=-300 + 10px

Answer 1

In this question:

X = Normal Good because there is a direct relationship between the quantity demanded and the income level. Therefore, any increase in income will result to an increase in demand.

R and X = Complimentary goods because the rise in demand of one good leads to an increase of the other.