Is this good a normal or an inferior good is this good a


Suppose the following is an estimated log-linear demand function:

ln Q = 8.99 - 3.78 ln P - 1.77 ln M - 2.03 ln PR

All parameter estimates are significant.

  • Is this good a normal or an inferior good?
  • Is this good a complement of or substitute for the related good?
  • What is the price elasticity of demand for this good?
  • What is the income elasticity of demand for this good?

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