Question

Qx=40-2y+2w-3x+80 I where x, y and w are commodities; Qx is quantity demand of good commodity x and I is income.
(a). What is the relationship between commodity x, y and w? (show your illustrations)

Answer 1

Qx = 40 - 2y + 2w - 3x + 80I, where x, y and w are commodities; Qx is quantity demand of good commodity x and I is income.

(a) There is direct relationship between commodity x and w, x and I, and there is inverse relationship between commodity x and y, x and w.