Question: The demand function for good X is In Qx = a + b In Px+ c In M + e, where Px is the

The demand function for good X is In Qx = a +

The demand function for good X is In Qx = a + b In Px+ c In M + e, where Px is the price of good X and M is income. Least squares regression reveals that: = 7.42 6 = -2.18 = 0.34 %3D a. If M = 55,000 and Py= 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: Demand is ( (Click to select) b. If M = 55,000 and Py= 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: X is ( (Click to select)+

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