Suppose the Demand for Good X Is LnQ_x^d = 21

question 134

Multiple Choice

Suppose the demand for good x is lnQ_x^d = 21 - 0.8 lnP_x - 1.6 lnP_y + 6.2 lnM + 0.4 lnA_x.Then we know that the own-price elasticity for good x is:

• A)unitary.
• B)elastic.
• C)inelastic.
• D)cannot be calculated from the existing information.

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