Assuming that the given demand function Qd = 700 − 2P − PR + 0.1M, represents the demand for Good-X where P is the price of Good-X, PR is the price of related product, while M is average consumer income. a.​What happens to the demand for Good-X when the price of related product goes up? ​What are the Good-X and the related product? b.​What happens to the demand for Good-X when average consumer income rises?

/in /by

Assuming that the given demand function Qd = 700 − 2P − PR +
0.1M, represents the demand for Good-X where P is the price
of Good-X, PR is the price of related product, while M is average
consumer income.

a.​What happens to the demand for Good-X when the price
of related product goes up? ​What
are the Good-X and the related product?

b.​What happens to the demand for Good-X when average consumer
income rises?

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