Suppose the Demand Function for a Consumer Is Given by

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The Answer is a. a. b. c. Since the price elasticity is -2 -- i.e. since demand is relatively price elastic, spending will fall as price increases. d. Since income does not appear in the demand function, the income elasticity of demand is zero. This implies that the good x is quasilinear.

a. b. c. Since the price elasticity is -2 -- i.e. since demand is relatively price elastic, spending will fall as price increases. d. Since income does not appear in the demand function, the income elasticity of demand is zero. This implies that the good x is quasilinear.

b.

c. Since the price elasticity is -2 -- i.e. since demand is relatively price elastic, spending will fall as price increases.
d. Since income does not appear in the demand function, the income elasticity of demand is zero. This implies that the good x is quasilinear.

Suppose the Demand Function for a Consumer Is Given by

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Suppose the Demand Function for a Consumer Is Given by

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Correct Answer:
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