The demand curve is given as:
Where:
QD=quantity demanded of good X
Px=price of good X
Py=price of good Y
Pz=price of good Z
I = consumer income, thousands of dollars
1. Based on the demand curve above, determine the equation of the demand curve if consumer income is $30,000, the price of good Y is $10, and the price of good Z is $20?
2. Graph the price of good X is $15, determine the quantity demanded? Show this point on the demand curve. Label this point on your graph.
3. Assume the price of good Y rises to $15. Graph the new demand curve.