Answer to Question #39323 in Microeconomics for Sarah

Question

Use the following demand function, Qx=f (Px, Py, I) where there are no other variables affecting
Qx, and Qx = quantity of good X
Px = price of good X
Py = price of good Y
I = income of consumer

To explain:

1. An increase in the quantity demanded for good X. Illustrate your answer with an appropriate graph.

2. An increase in the demand for good X. Illustrate your answer with an appropriate graph.