17. The demand for good X is estimated to be Q, = 10, 000 – 4Px + 5Py + 2M+Ax where Px is the price of X, Py is the price of good Y, M is income, and Ax is the amount of advertising on X. Suppose the present price of good X is $50, Py = $100, M = $25,000, and Ax = 1,000 units. Based on this information, the income elasticity of good X is: A. 0.008. B. 0.082. С. 0.82. D. 8.2.

17. The demand for good X is estimated to be Q, = 10, 000 – 4Px + 5Py + 2M+Ax where Px is the price of X, Py is the price of good Y, M is income, and Ax is the amount of advertising on X. Suppose the present price of good X is $50, Py = $100, M = $25,000, and Ax = 1,000 units. Based on this information, the income elasticity of good X is: A. 0.008. B. 0.082. С. 0.82. D. 8.2.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 2QFR

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