Question: The demand curve is given by QD = 500 ? 5PX + 0.5I + 10PY ? 2PZ where QD = quantity demanded of good X

The demand curve is given by QD = 500 ? 5PX + 0.5I + 10PY ? 2PZ where QD = quantity demanded of good X PX = price of good X I = consumer income, in thousands PY = price of good Y PZ = price of good Z a. Based on the demand curve above, is X a normal or an inferior good? b. Based on the demand curve above, what is the relationship between good X and good Y? c. Based on the demand curve above, what is the relationship between good X and good Z? d. 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? 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 your demand curve. g. Now suppose the price of good Y rises to $15. Graph the new demand curve.

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