43. The BJC Company has the following demand function: Q = 300 30(price) + 0.01(income) Currently,...
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4–3. The BJC Company has the following demand function:
Q = 300 − 30(price) + 0.01(income)
Currently, price is $5 and income is $20,000.
a. Calculate the point elasticities for price and income.
b. Is the product a normal or an inferior good?
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Related Book For
Managerial Economics And Organizational Architecture
ISBN: 9781260571219
7th International Edition
Authors: Clifford W. Smith, Jerold Zimmerman, James Brickley
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