Draw precisely the engel curve

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Reference no: EM131160077

Nick loves the new Taco Bell product. His demand function for Taco Bell-Doritos Locos is as follows: Qd= (8Y – Y 2 ) – 0.1Pt; Y is a number between $2≤Y≤$6 and stands for income. Pt, the price of Taco Bell Doritos Locos, is equal to $10.

a. Draw precisely the Engel curve (i.e. show how your Engel curve is related to the above equation)

b. Is Taco Bell-Doritos Locos an inferior good or a normal good? Explain your answer in details.

Reference no: EM131160077

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