Suppose the demand for good x is ln Q_x^d = 21 − 0.8 ln P_x − 1.6 ln P_y + 6.2 ln M + 0.4 ln A_x.Then we know good x is: A) an inferior good. B) an elastic good. C) a normal good. D) a Giffen good.

Name: Suppose the demand for good x is ln Q x d = 21 − 0.8 ln P x − 1.6 ln P y + 6.2 ln M + 0.4 ln A x .Then we know good x is: A) an inferior good. B) an elastic good. C) a normal good. D) a Giffen good.
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Since the coefficient of the income variable (ln M) is positive, good x is a normal good.

Suppose the Demand for Good X Is Ln Qxd =

Suppose the Demand for Good X Is Ln Q_x^d =