Question: QUESTION 1 (20 points) Consider Maria's demand function x = VPx 3py A. Find the derivative ax B. Is x a normal or an inferior

QUESTION 1 (20 points) Consider Maria's demand function x = VPx

QUESTION 1 (20 points) Consider Maria's demand function x = VPx 3py A. Find the derivative ax B. Is x a normal or an inferior good? C. Find her income elasticity Ex , and interpret your results. ax D. Find the derivative its sign and interpret it. (Hint: Rewrite the demand function as apx 1 x = 51(Px - 3py) and use the chain rule)

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