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 that the own price elasticity for good x is:

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 that the own price elasticity for good x is:
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Question

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The own price elasticity of demand is given by the coefficient of ln P_x, which is -0.8. Since the absolute value is less than 1, the demand is inelastic.

Suppose the Demand for Good X Is Ln Qxd =

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