Question;The demand curve is given byQD = 500 - 5PX + 0.5I + 10PY - 2PZwhereQD = quantity demanded of good XPX = price of good XI = consumer income, in thousandsPY = price of good YPZ = price of good Za. Based on the demand curve above, is X a normal or an inferior good?b. Based on the demand curve above, what is the relationship between good X and good Y?c. Based on the demand curve above, what is the relationship between good X and good Z?d. What is the equation of the demand curve if consumer incomes are $30,000, the price ofgood Y is $10, and the price of good Z is $20?e. Graph the demand curve that you found in (d), showing intercepts and slope.f. If the price of good X is $15, what is the quantity demanded? Show this point on yourdemand curve.g. Now suppose the price of good Y rises to $15.Graph the new demand curve.
Paper#57742 | Written in 18-Jul-2015Price : $22