The demand curve is given as:
Where:
Px= price of good X
QD=quantity demanded of good X
I = consumer income, thousands of dollars
Pz=price of good Z
Py=price of good Y
1. What is the equation of the demand curve if consumer income is $30,000, the price of good Y is $10, and the price of good Z is $20 based on the demand curve above?
2. Graph the price of good X is $15, determine the quantity demanded? Label this point on your graph.
3. Assume the price of good Y rises to $15. Make a graph for the new demand curve.