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Q. The demand for your product has been estimated to be Q = 7880 - 4Px - 2Py + Pz - .1M
The relevant price and income data are as follows: Px = $10, Py = $15. Pz = $50, M = $40,000
a. Which goods is substitute's s for X? Which are complements?
b. Is X an inferior or a normal good?
c. Explain how much X will be purchased?
d. Graph the demand curve for X given above information. (Just describe the graph)
e. Explain how will the demand curve change if M falls to $35000?
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