Research shows that the prices of related goods are given

Question

The demand for good X is given by

Q_X^d = 6,000 - (0.5)P_X - P_Y + 9P_Z + (0.10)M

Research shows that the prices of related goods are given by P_y = $6,500 and P_z = $100, while the average income of individuals consuming this product is M= $70,000.

a. Indicate whether goods Y and Z are substitutes or complements for good X.

Good Y is: (Click to select)a complementneither complement nor substitutea substitute

Good Z is: (Click to select)neither complement nor substitutea substitutea complement

b. Is X an inferior or a normal good?

Good X is: (Click to select)a normal goodan inferior goodneither a normal nor an inferior good

c. How many units of good X will be purchased when P_x = $5,230?

d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.

Instruction: Enter all coefficient as integers or decimal numbers.

Demand function:  - P_X

Inverse demand function: P_X =  - Q_X^d