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10 Supply and Demand Practice Questions

10 Supply and Demand Practice Questions -

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<meta http-equiv=refresh content="0;url=http://www.about.com/snf.htm? u=http://economics.about.com/od/demand/ss/10_questions_2.htm%3Frd%3D1"> 1. Home 2. Education 3. Economics Object 1 Economics Search Economics Basics Economic Indicators Economic Issues Share Print Discuss in our Forum Apply now to guide this site 10 Supply and Demand Practice Questions From Mike Moffatt , former About.com Guide See More About: supply demand economics for beginners
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2 of 10 Prev Next 10 Supply and Demand Practice Questions - Question 2 Question 2 : The quantity demanded of Good Z depends upon the price of Z (Pz), monthly income (Y), and the price of a related Good W (Pw). Demand for Good Z (Qz) is given by equation 1 below: Qz = 150 - 8Pz + 2Y - 15Pw Find the demand equation for Good Z in terms of the price for Z (Pz), when Y is $50 and Pw = $6. ---- Answer: This is a simple substitution question. Substitute those two values into our demand equation: Qz = 150 - 8Pz + 2Y - 15Pw Qz = 150 - 8Pz + 2*50 - 15*6 Qz = 150 - 8Pz + 100 - 90 Simplifying gives us:
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