Q1. Give examples of two consumer goods in your daily life. Any goods from all should be of higher demand than supply; the other good should show higher supply than demand. Examples may vary, i.e. from healthy food to wrist watches.
Q2. Let a random variable X be distributed as N (0,1). Now suppose that a second random variable, Y, is constructed as the product of X and an independent random variable Z, which equals 1 with probability ½ and -1 with probability ½. What is the (marginal) distribution of Y? What is the covariance between X and Y? What is the distribution of X conditional on Y?