1. Suppose the supply function for product X is given by: Qxs = -50 + 0.5Px 5Pz a.

. How much of product X is produced when Px = $500 and Pz = $30 b. Suppose Pz = $30, determine the supply function. 2. The demand function of product X is given by: Qxd = 1200 0.5Px + 0.25Py 8Pz + 0.1M Research shows that the prices of related goods are given by Py =$5900 and Pz =$90, while the average income of individuals consuming this product is M = $55000. a. Indicate whether good Y and Z are substitutes or compliments for good X. b. Is good X an inferior or normal good? c. How many units of good X will be purchased when Px = $4910? d. Determine the demand function and inverse demand function for good X. 3. The demand curve is given by Qd = 500 5Px + 0.5I + 10Py 2Pz a. Based on the demand curve above, is X is normal or inferior good? b. What is the relationship between good X and good Y? c. What is the relationship between good X and good Z? d. What is the equation of the demand curve if consumers incomes are $30,000, the price of good Y is $10, and the price of good Z is $20?