Answer to Question #58358 in Microeconomics for paulina
a) QDx = 300 - 2*25 + 4*35 - 2*20 - 0.01*20000 = 150 units.
b) the relationship between goods are:
i) good x and good y are substitutes, because the increase in price for good y will cause the increase in quantity demanded of good x.
ii) good x and good z are complements, because the increase in price for good z will cause the decrease in quantity demanded of good x.
c) good x is inferior, because with the increase in income the quantity demanded of good x will decrease.
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