Answer to Question #166066 in Microeconomics for Prathiksha

Question

Suppose the demand for a product is given by Qc=100 - 2Pt+Pc where Qc is the quantity demand for coffee,Pc is the price of coffee,Pt is the price of the substitute good tea.The price of the substitute good is  ₹400/kg.Suppos Pc=₹620/kg what would be the demand of coffee?

Answer 1

If demand for coffee represent Qc,

Recall that Qc =100-2pt+Pc

Where Pt represent price of substitute good with is equal to 400 per kg and Pc represent price coffee which is 620 per kg.

There Qc= 100-2(400)+620

Qc = -80.