1.Let X and Y be two goods, and let M be the consumer's income. Suppose the demand curve for good X is given by Q_{X =} 60 - 2 P_X+ P_Y- 2/10 M.

1. If P_Y= 10 and M = 100, graph the demand curve for X belowand show the quantities demanded for P_X= 20 and P_X= 10.
2. What happens to the demand for X, if P_Ygoes from 10 to 20? Show the new demand curve on your graph from part A. Calculate the cross-price elasticity, assuming that P_X= 10. Are X and Y complements or substitutes?
3. Assuming that P_Y= 10, suppose income changes from $100 to $200. Show the new demand curve on your graph from part A. Assuming that P_X= 10, calculate Q_X.Calculate the income-elasticity. Is X a normal or inferior good?