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Estimate the demand equation for good x

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Suppose that your analyst estimates the demand equation for good X as givenbelow: =12- -2 +1 + Good X sells for $1 per unit, good Y sells for $2 per unit, good Z sells for $1 per unit, and consumer income is $4.

  • Using the information provided by your analyst, please determine the demand equation. (Please use graphs to support your answer).
  • Please calculate the own price elasticity of demand for good X. Is the demand for good X elastic, inelastic, or unit elastic? (Please indicate where on your graph of the demand equation from part a, your calculation of own-price elasticity lies.)
  • How would sales change if a recession hit and income declined by 2.3%,

Reference no: EM132660349

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