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The above model is more consistent with Marshall's demand analysis. One way to look at how Hicks would likely proceed, we will adjust income in
The above model is more consistent with Marshall's demand analysis. One way to look at how Hicks would likely proceed, we will adjust income in the following way. In the second spreadsheet called "adj income" the data from the first spreadsheet is replicated. Follow the calculation directions as indicated in the spreadsheet to calculate data for columns G, H, I, J, and K. Copy, column K into the spreadsheet called "Hicks" in column E. 7. In "Hicks", calculate the LN values for your data (just as before) in columns G, H, I, and J. Run the following regression in Excel: In(qx) = constant + Bx*In(px) + By*In(py) + B*In(Inc adj) Place the output starting in cell M2 of the same spreadsheet. 8. Compare the coefficient on px now with the coefficient on px from Marshal's demand curve. What do these two elasticities suggests about good x? Is it normal or inferior. Explain
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