The demand for good X has been estimated to be lnQXd = 100 – 2.5 lnPX + 4 lnPY + lnM. The income elasticity of good X is
Note
The demand for good X has been estimated to be lnQXd = 100 - 2.5 lnPX + 4 lnPY + lnM. The income elasticity of good X is 1.0.