Can you please assist me in determining the questions below, based on the given
ID: 1256127 • Letter: C
Question
Can you please assist me in determining the questions below, based on the given demand curve
Qd = 500 -5Px + 0.5I +10Py - 2Pz
a) based on the demand curve above, is X a normal or inferior good?
b) based on the demand curve above, what is the relationship between good X and good Y?
c) based on the demand curve, what is the relationship between good X and good Z?
d) what is the equation of the demnad 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 slope
f) if the price 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.
Explanation / Answer
= 500 – 5*Px + 0.5*30000 + 10*10 – 2*20
= 500 + 15000 +100 – 40
=15560 – 5Px