The demand for a good is QD = 19 – 2P + 4l where P and I represent price and income respectively. At price of P=1 and income l=32, determine what type of good this is (inferior, necessity, or luxury) by calculating the income elasticity of demand.

The demand for a good is QD = 19 – 2P + 4l where P and I represent price and income respectively. At price of P=1 and income l=32, determine what type of good this is (inferior, necessity, or luxury) by calculating the income elasticity of demand.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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Question

The demand for a good is QD = 19 – 2P + 4l where P
and I represent price and income respectively. At price of
P=1 and income l=32, determine what type of good this
is (inferior, necessity, or luxury) by calculating the income
elasticity of demand.

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