Question: Assume the demand function for good X can be written as:
QX = 30 - 3PX + 2PY + 0.2I
Where PX is the price of good X PY is the price of good Y I is the consumer income.
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) What is the equation of the demand curve if consumer incomes are $40,000 (use $40, income in thousands) and the price of good Y is $35?