Question assume the demand function for good x can be, Ask an Expert

Economics

Question: Assume the demand function for good X can be written as:

QX = 30 - 3PX + 2PY + 0.2I

Where PX is the price of good X PY is the price of good Y I is the consumer income.

a) Based on the demand curve above, is X a normal or inferior good?

b) Based on the demand curve above, what is the relationship between good X and good Y?

c) What is the equation of the demand curve if consumer incomes are $40,000 (use $40, income in thousands) and the price of good Y is $35?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93116426

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