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Calculate the point elasticities for price and income

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Reference no: EM13921798

The BJC Company has the following demand function:

Q = 300 - 30(price) + 0.01(income) Currently, price is $5 and income is $20,000.

a. Calculate the point elasticities for price and income.

b. Is the product a normal or an inferior good?

Reference no: EM13921798

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