The demand curve is given by QD = 500 – PX + 0.5 I +10 PY - 2 PZ Where QD= quantity demand of good X PX= price of good X I= consumer income, in thousands PY= price of good Y PZ= price of good Z.
A) Base on the demand curve above is X normal or an inferior good?
B) Base on the demand curve above, what is the relation between good X and good Y?
C) Base on the demand curve above, what is the relation between goo X and good Z?
D) What is the equation of demand curve if consumer income are $30000, 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 intercept and slope.
F) If the price good X is $15, what is the quantity demand? Show this point on your demand curve.
G) Now the price of good Y rises to $15. Graph the new demand curve.