Suppose a linear demand function is estimated for good x as


Suppose a linear demand function is estimated for good x as, Qd = 100 – 4*Px + 6*Py + M. where Px = $4, Py = $2, and M =10. M is the average income of consumers, measured in thousands of dollars. What is the price elasticity of good x? (choose the nearest number)

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Business Economics: Suppose a linear demand function is estimated for good x as
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