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Question: question 46 points economic theory calls a good quotnormalquot if...

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Question 4(6 points) Economic theory calls a good normal if quantity demanded increases with income; inferior if quantity demanded falls. For a particular good, you want to determine empirically if it is a normal good or an inferior good. Write an appropriate simple regression model for this purpose. Identify you dependent and independent variables. (2 points What specific data would be required to estimate the model? (2 points) a. b. c. Explain how you would test if this good is a normal good or an inferior good. (2 points)

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