Posted: March 7th, 2017

Assume the demand function for skin care products is given by Q = 1,000 20P + 5I If P=$25 and I=$1,000 currently then:

Assume the demand function for skin care products is given by Q = 1,000 20P + 5I
If P=$25 and I=$1,000 currently then:
a. Skin care products are a normal good.
b. The elasticity of demand is equal to 11.
c. Skin care products are inferior.
d. The price is too high.