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Suppose the Demand for Good X Is LnQxd = 21

Question 134

Multiple Choice

Suppose the demand for good x is lnQxd = 21 - 0.8 lnPx - 1.6 lnPy + 6.2 lnM + 0.4 lnAx.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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