What is the equation of the demand curve

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The demand curve for good X is given by QD =500 - 5PX + 0.5I + 10PY - 2PZ where QD = quantity demanded of good X I = consumer income, in thousands PY = price of good Y PZ = price of good Z

a. Based on the demand curve above, i. Is X a normal or an inferior good? Explain ii. What is the relationship between good X and good Y. iii. What is the relationship between good X and good Z.

b. What is the equation of the demand curve if consumer incomes are$30,000, the price of good Y is $10, and the price of good Z is $20?

c. Graph the demand curve that you found in (b), showing intercepts and slope.

d. If the price of good X is $15, what is the quantity demanded? Show this point on your demand curve.

e. Now suppose the price of good Y rises to $15, graph the new demand curve.

Reference no: EM13836072

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