Question
How do I solve and graph questions a through g? Please help! The demand curve is given by QD= 500-5Px+0.5I + 10PY- 2Pz where QD=
How do I solve and graph questions a through g? Please help!
The demand curve is given by
QD= 500-5Px+0.5I + 10PY- 2Pz where
QD= quantity demanded of good X
PX=price 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, is X a normal or an inferior good and why?
b. Based on the demand curve above, what is the relationship between good X and good Y? Why?
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?
e. Graph the demand curve that you found in (d), showing intercepts and slopes
f. If the pirce of good X is $15. what is the quantity demanded? Show this point on your demand curve.
g. Now suppose the price of good Y rises to $15. Graph the new demand curve, label and show your work.
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