Answer to Question #199392 in Management for Kwabena

Question

The weekly demand for Kelewele among the 2018 batch of MBA students at UPSA is

Qdx = 900 10Px + 0.2I + 5Py 4Pz

Where Qdx is the quantity demanded of Kelewele

Px is the price of Kelewele per lb

I is the consumer income in Ghana Cedis

Py and Pz are the prices of two goods that are related to Kelewele

a) Based on the demand function above, is Kelewele a normal good or an inferior good?

b) Based on the demand function above, what is the relationship between Kelewele and good Y? [

c) Based on the demand function above, what is the relationship between Kelewele and

good Z?

d)

What is the equation of the demand curve if consumer incomes are GHȼ 40, the price of

good Y is GHȼ 20 and the price of good Z is GHȼ 27?

e)

Graph the demand function for Kelewele from d)

Answer 1

a) Based on the demand function above, is Kelewele a normal good or an inferior good?

normal good.

b) Based on the demand function above, what is the relationship between Kelewele and good Y?

y=x

c) Based on the demand function above, what is the relationship between Kelewele and

good Z?

z=x

d) What is the equation of the demand curve if consumer incomes are GHȼ 40, the price of

good Y is GHȼ 20 and the price of good Z is GHȼ 27?

qdx=900 10px+0.2(40)+5p(20)4(27)