Question
*EASY* The quantity demand of a good is given by Q = 75 + 0.3m 10p , where p is the price of this good
*EASY*
The quantity demand of a good is given by Q = 75 + 0.3m 10p , where p is the price of this good and m is the consumer's income.
For m= 100, and p = 2,
calculate the income elasticity. Is this good a normal or an inferior good? Justify your answer.
calculate the price elasticity. Is it elastic or inelastic? Ordinary or Giffen? Justify your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Econometrics By Example
Authors: Damodar Gujarati
2nd Edition
1137375019, 9781137375018
