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 Which goods are substitutes for X? Which are complements Is X an inferior or a normal good How much X will be purchased?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Exercise 1.   The demand for your product X has been estimated to be

QX = 7, 880 4PX2PY + PZ0.1M

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

  1. Which goods are substitutes for X? Which are complements
  2. Is X an inferior or a normal good
  3. How much X will be purchased?
  4. Graph the demand curve for X given the above
  5. How will the demand curve change if M falls to 35, 000? Is that in line with b?
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