Suppose the demand for good X is lnQX d = 21 – 0.8 lnPX – 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know goods x and y are:
Note
Suppose the demand for good X is lnQX d = 21 - 0.8 lnPX - 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know goods x and y are Complements.