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 QX = 100 - 30 PX- 60PY+ 14M  

If PY = 10 and M = 100, graph the demand curve for X below and show the quantities demanded for PX = 20 and PX = 10.

What happens to the demand for X, if PY goes from 10 to 20? Show the new demand curve on your graph from part A. Are X and Y complements or substitutes? Calculate the cross-price elasticity, assuming that PX = 10.

Assuming that PY = 10, suppose income changes from $100 to $200. Show the new demand curve on your graph from part A. Assuming that PX = 10, calculate QX. Calculate the income-elasticity. Is X a normal or inferior good?