SUPPLY AND DEMAND ANALYSIS

Question

The demand, Q, for a certain good depends on its own price, P, and the price of an alternative good, PA, according to

Q = 30 − 3P + PA

(a) Find Q if P = 4 and PA = 5.

(b) Is the alternative good substitutable or complementary? Give a reason for your answer.

(c) Determine the value of P if Q = 23 and PA = 11.

CAN ANYONE HELP PLEASE?!

Answer 1

Q=30-3(4) + 5= 23

the alternative good is a substitute. as PA goes up, consumers switch away from the alternative to a substitute

23= 30-3P + 11

3P= 30+11-23 = 18

P = 18/3 = 6