a= 7.42 b= -2.18 c= 0.34
a. If M = 55,000 and Px = 4.39, compute the own price elasticity of demand based on these estimates. Determine whether demand is elastic or inelastic.
Own price elasticity of demand: ?
b. If M = 55,000 and Px = 4.39, compute the income elasticity of demand based on these estimates. Determine whether X is a normal or inferior good.
Income elasticity of demand: ?
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