A demand function of a certain good is given by Q = 20P + 0.04Y + 4T + 3Pr

where Q and P denote the quantity and price of the good, Y is income, T is taste and Pr is the price of a related good.

(a)CalculateQwhenP=8,Y=1000,T=15andPr =30.

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

(c) Find the value of P when Q = 235, Y = 8000, T = 30 and Pr = 25.

(d) The exogenous variables are now fixed at Y = 2000, T = 10 and Pr = 5. State the values of the slope and vertical intercept when the demand function is sketched with

(i) P on the horizontal axis and Q on the vertical axis; (ii) Q on the horizontal axis and P on the vertical axis.