Explain type of good by demand equation for firm-s product


The demand equation for a firm's product is given by the equation ln Q = 100 - 0.25 ln P - 0.5 ln M + 0.5 ln A + 10 ln PY, where Q = quantity, P = price, M = income, A = advertising expenditures, and PY = price of a related good. Based on this demand equation, this good is:

a. inferior.

b. normal.

c. a necessity.

d. a luxury.

e. None of the above.

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Microeconomics: Explain type of good by demand equation for firm-s product
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