Question: Suppose that your analyst estimates the demand equation for good X as given below: = 12 2 + 2 Good X sells for $2 per

Suppose that your analyst estimates the demand equation for good X as given below: = 12 2 + 2 Good X sells for $2 per unit, good Y sells for $1 per unit, good Z sells for $1 per unit, and consumer income is $5.

Please calculate the own-price elasticity of demand for good X. Is the demand for good X elastic, inelastic, or unit elastic? (Please use graphs to support your answer and indicate the region of the demand equation on the graph from part b in which your calculation of own-price elasticity lies.)

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