3.The demand curve is given by:

Qo = 500 - SPx+ 0.51 + lOPY - 2Pz

where: Qo= quantity demanded of good X, Px= Price of good X, !=consumer income in thousands, Py= price of good Y, Pz=price of good Z

a.Based on the demand curve above, is X a normal or an inferior good? _____ _

b.Based on 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 of good Y is $10, and the price of good Z is $20?

OD = 500- 5px + 0.5(30,000) + 100 - 40

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 your demand curve.