Q1. A luxury good is a good for which the income elasticity exceeds one. The demand for a luxury good is given by Qd = x + yP + zI (where I is income). Provide and explain any restrictions on the parameters x, y and z. (You may focus your analysis to restrictions on the parameters for the specific case when P=I=1 if helpful).
Q2. The craven behavior of the disgraced U.S. Bureau of Ocean Energy, Management, Regulation and Enforcement resulted in its replacement Discuss the capture of the regulatory agency and your prediction as to the capture of the replacement regulatory agency and the politicians in the future.