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Suppose the demand for Good X is ln Q x d = 21 0.5 ln P x 2.3 ln P y + 5ln M +
Suppose the demand for Good X is ln Qxd = 21 0.5 ln Px 2.3 ln Py + 5ln M + 0.35 ln Ax. Then we know good X has a(n)
Multiple Choice
- own price elasticity of 0.5 and is a complement to Good Y.
- income elasticity of 0.5 and is an inferior good.
- cross-price elasticity of 0.5 and is a normal good.
- income elasticity of 5 and is a substitute to Good Y.
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Managerial Decision Modeling Business Analytics With Spreadsheet
Authors: Nagraj Balakrishnan, Barry Render, Ralph Stair, Charles Munson
4th Edition
1501515101, 978-1501515101
