Question
Assume the demand function for skin care products is given by Q = 1,000 - 20 P + 5I. If P=$25 and I=$1,000 currently, then
Assume the demand function for skin care products is given by Q = 1,000 - 20 P + 5I. If P=$25 and I=$1,000 currently, then
A. skin care products are normal goods.
B. the elasticity of demand is equal to 11.
C. skin care products are inferior goods.
D. the elasticity of demand is equal to 10.
E. none of the above.
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Exploring Economics
Authors: Robert L Sexton
5th Edition
978-1439040249, 1439040249
