Problem
The demand for beer in Japan is given by the following equation: Qd = 700 - 2P - PN + 0.1I, where P is the price of beer, PN is the price of nuts, and I is average consumer income.
a) What happens to the demand for beer when the price of nuts goes up? Are beer and nuts demand substitutes or demand complements?
b) What happens to the demand for beer when average consumer income rises?
c) Graph the demand curve for beer when and PN 100 and I 10,000.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.