Question: Given a demand function Qd=-20 + 0.25Yd-0.9P, where Qd: quantity demanded, Yd: disposable income (ie. after-tax income), Yd=Y - T=P: price. Assume all other things

Given a demand function Qd=-20 + 0.25Yd-0.9P, where Qd: quantity demanded, Yd: disposable income (ie. after-tax income), Yd=Y - T=P: price.

Assume all other things being held constant, based on this demand function, how do you interpret the relationship between quantity demanded Qd and disposable income, Yd? How do you interpret the relationship between quantity demanded Qd and price P?

Does it make sense that the intercept in this demand function is negative?

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