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.
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Financial Accounting
Authors: Charles T. Horngren, Jr. Harrison, Walter T.
2nd Edition
0133118207, 978-0133118209
