Suppose a demand curve for good x is given by Qx = 60 – 2Px + 0.5Py – 0 1M (For those of you who don’t like math, don’t be afraid that this demand curve looks complicated because Py and M are in it, just plug the values in).

Suppose a demand curve for good x is given by Qx = 60 – 2Px + 0.5Py – 0 1M (For those of you who don’t like math, don’t be afraid that this demand curve looks complicated because Py and M are in it, just plug the values in).
a. If Py = 10 and M = 100, graph the demand curve and show the quantities demanded for Px = 20 and Px = 10. Calculate the own price arc elasticity over this price range using the average price and quantity as your base. b.Assuming that Px = 10 and that M = 100. suppose the price of Py goes from 10 to 20. Calculate the cross price elasticity of demand for goods x and y. Are they complements or substitutes?
c. Assuming that Px = 10 and that Py = 10, suppose income changes from $100 to $200. Calculate the income elasticity of demand for good x. Is x a normal or inferior good?

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