Question: Suppose that your analyst estimates the demand equation for good X as given below: = 12 2 + 2 Good X sells for $2 per

Suppose that your analyst estimates the demand equation for good X as given below:

= 12 2+ 2

Good X sells for $2 per unit, good Y sells for $1 per unit, good Z sells for $1 per unit, and consumer income is $5.

a.Please indicate whether good Y and Z are complements or substitutes and include in your response whether you think it is possible for a single good to have multiple complements or substitutes. If you answer yes to this question, please provide a real-world scenario in which this situation would hold.

b.Using the information provided by your analyst, please determine the demand equation. (Please use graphs to support your answer).

c. Please calculate the own price elasticity of demand for good X. Is the demand for good X elastic, inelastic, or unit elastic? (Please use graphs to support your answer and indicate the region of the demand equation on the graph from part b in which your calculation of own-price elasticity lies.)

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