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Suppose the demand for a product is lnQxd = 12 − 3 ln Px. Then product...

Suppose the demand for a product is lnQxd = 12 − 3 ln Px. Then product x is:
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Answer #1

Here we can oberve that the price elasticity of demand is

.

As Price elasticity of demand is negative and above 1 in abosute terms so we can conclude that: Product X is price elastic.

as the sign of PED is negative which tells us that the good is normal. PED is positive only for giffen goods or veblen goods.

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