3. The demand curve is given byQD 500 5PX 0.5I 10PY 2PZwhereQD quantity demanded of good XPX price of good XI consumer income, in thousandsPY price of good YPZ price of good ZBased on the demand curve above, is X a normal or an inferior good?b. Based on the demand curve above, what is therelationship between good X and good Y?c. Based on the demand curve above, what is therelationship between good X and good Z?d. What is the equation of the demand curve ifconsumer incomes are $30,000, the price ofgood Y is $10, and the price of good Z is $20?e. Graph the demand curve that you found in (d),showing intercepts and slope.f. If the price of good X is $15, what is the quantity demanded? Show this point on yourdemand curve.g. Now suppose the price of good Y rises to $15.Graph the new demand curve.
Hi there! Click one of our representatives below and we will get back to you as soon as possible.