1. Demand for Caf VARISTAT's ace coffee was

estimated as follows:

Log(Qx)=0.26 -1.5log(Px) + 3.1 log(Y)+0.65 log(Pr)

If the ace coffee is priced at Rs.30, average income

is Rs 9000 and Pr is Rs. 25, compute the total

demand.

If govt. is considering 10% increase in its tax on

coffee, what will be your advice?

Is ace coffee a normal good?

Is the substitute coffee brand is a good alternative

to ace coffee?