The demand for good x is given by Qdx=6,000-1/2 Px - Py + 9Pz + 1/10M
Research shows that the prices of related goods are given by Py = $6500 and Pz = $100, while the average income of individuals consuming this product is M = $70,000.
a. Indicate whether goods Y and Z are subsitutes or complements for good X and why? Please show all work.
b. Is X an inferior or a normal good? Why? Show all work.
c. How many units of good X will be purchased when Px = $5,230? Please show all work
d. Determine the demand function and inverse demand function for good X, graph the demand curve for good X. Please show all work.