The demand curve is given by QD = 500 - 5PX + 0.5I + 10PY - 2PZWhere QD = quantity demanded of good1 answer below »

The demand curve is given by QD = 500 − 5PX + 0.5I + 10PY − 2PZWhere QD = quantity demanded of good X PX = price of good XI = consumer income, in thousandsPY = price of good YPZ = price of good Za. Based on the demand curve above, is X a normal or an inferior good? Coefficient income is positive and X is a normal good.b. Based on the demand curve above, what is the relationship between good X and good Y? Coefficient of Py is positive and X and Y are substitutesc. Based on the demand curve above, what is the relationship between good X and good Z? Coefficient of Pz is negative and X and Z are complementsd. What is the equation of the demand curve if consumer incomes are $30,000, the price of good Y is $10, and the price of good Z is $20? QD = 500 − 5PX + 0.5I + 10PY − 2PZI = 30PY = 10PZ = 20Qd=500-5Px+0.5*30+10*10-2*20Qd=575-5Pxe. Graph the demand curve that you found in (d), showing intercepts and slope. Intercept 115 slope 0.2f. If the price of good X is $15, what is the quantity demanded? Show this point on your demand curve.g. Now suppose the price of good Y rises to $15.

Oct 27 2020 02:39 PM

1 Approved Answer

Ashish
answered on
October 29, 2020

5
Ratings,(13 Votes)

Solution: a. Normal good, since demand will decrease as price increases and demand will increase as...

## 1 Approved Answer

October 29, 2020Solution:

a.

Normal good, since demand will decrease as price increases and demand will increase as...

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