Question: Supply and Demand/Demand Analysis Suppose that your analyst estimates the demand equation for good X as given: Q = 10-2Px-4Py+2M Good X sells for $1

Supply and Demand/Demand Analysis

Suppose that your analyst estimates the demand equation for good X as given: Q = 10-2Px-4Py+2M

Good X sells for $1 per unit, good Y sells for $2 per unit, and consumer income is$10

a.Please calculate the own price elasticity of demand, cross-price elasticity of demand between good X and Y, and the income elasticity of demand for good X. If you are unable to calculate any of these values, please state your reason(s)

b.Using the information provided by your analyst, please determine the demand equation.

c.Please calculate the income elasticity of demand for good Y and state whether it is a normal good or inferior good. If you are unable to calculate this value, please state your reason(s).

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