The demand function for a good is defined as Q = 20 - 1.5P + 0.2I, where I is a measure of consumer income. Calculate the price elasticity of demand using the point formula for P = 16 and I = 110. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether the good is normal or inferior and whether it is a luxury or a necessity.

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The Answer of The demand function for a good is defined as Q = 20 - 1.5P + 0.2I, where I is a measure of consumer income. Calculate the price elasticity of demand using the point formula for P = 16 and I = 110. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether the good is normal or inferior and whether it is a luxury or a necessity.

The Demand Function for a Good Is Defined as Q