Let P Be the Price of a Good and Let

question 86

Multiple Choice

Let P be the price of a good and let I represent consumer income. Which of the following demand functions represents a luxury good with inelastic price response?

• A) log(Q) = 4 - 2 log(P) + 2 log(I)
• B) log(Q) = 4 - 0.5 log(P) + 0.25 log(I)
• C) log(Q) = 4 - 0.25 log(P) + 2 log(I)
• D) log(Q) = 4 + 2 log(P) + 0.2 log(I)

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