# The general demand function for good A is Qd = 754 – 2PA – 0.05M + 6PB +10Á+ 3PE + 2N where Qd = quantity demanded of good A each month, PA = price of good A, M = average household income, PB = price

### FIRST GRADER essay writing company is the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click the button below to place your order.

Order a Similar Paper Order a Different Paper

The general demand function for good A is Qd = 754 – 2PA – 0.05M + 6PB +10Á+ 3PE + 2N where Qd = quantity demanded of good A each month, PA = price of good A, M = average household income, PB = price of related good B, Á = a consumer taste index ranging in value from 0 to 10 (the highest rating), PE = price consumers expect to pay next month for good A, and N = number of buyers in the market for good A. a. Interpret the intercept parameter in the general demand function. b. What is the value of the slope parameter for the price of good A? Does it have the correct algebraic sign? Why? c. Interpret the slope parameter for income. Is good A normal or inferior? Explain. d. Are goods A and B substitutes or complements? Explain. Interpret the slope parameter for the price of good B. e. Are the algebraic signs on the slope parameters for Á, PE, and N correct? Explain. f. Calculate the quantity demanded of good A when PA = $2, M = $60,000, PB =$24, Á = 7, PE = $12, and N = 12,000.

### Got stuck with another paper? We can help! Use our paper writing service to score better grades and meet your deadlines.

Get 15% discount for your first order

Order a Similar Paper Order a Different Paper