Question
The demand for a good X by a consumer is described by the function X* (Px, Py, M) = M/2 - 2Px + 0.5Py ,
The demand for a good X by a consumer is described by the function X* (Px, Py, M) = M/2 - 2Px + 0.5Py , where X* stands forthe quantity demanded by the consumer of good X; Px denotes the unit price of good X; Py denotes the unit price of good Y,and M is the consumer's income. Explain briefly how exactly (in words or mathematicalstatement), whether the good under consideration is X for the consumer:(a) an ordinary good or a Giffen good?(b) a substitute for good Y or a complementary good to good Y?
do not use copy while answering: need clear answer and in well format. If possible please add conclusion along with the answer..
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