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The demand for your product X has been estimated to be QX =7,880−4PX −2PY +PZ −0.1M...

The demand for your product X has been estimated to be QX =7,880−4PX −2PY +PZ −0.1M

where Y and Z are other (related) products. The relevant price and income data are as follows:PX =10,PY =15,PZ =50,M=40,000

a. Which goods are substitutes for X? Which are complements?

b. Is X an inferior or a normal good?

c. How much X will be purchased?
d. Graph the demand curve for X given the above information.

e. How will the demand curve change if M falls to 35, 000? Is that in line with b.?

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