The demand for good X is given by lnQX d…statements is correct?

Managerial Economics

The demand for good X is given by lnQX d = 120 – 0.9 lnPX + 1.5 lnPY – 0.7 lnM. Which of the following statements is correct?

X has constant income elasticity
An economic downturn will increase demand for X
A 15% increase in income would increase demand for X by 10.5%
X has a constant income elasticity and an economic downturn will increase the demand for X

The demand for good X is given by lnQX d = 120 - 0.9 lnPX + 1.5 lnPY - 0.7 lnM. the following statements correct is X has constant income elasticity.

Tags: Quantitative Demand Analysis