Given the estimated demand function for good X: lnQx = 10 - 0.5lnPx - 0.1 (Income),  we know that:Question 5Answera.Good X is price elastic.b.Good X is price inelastic.c.Good X is a normal good.d.Demand for Good X is cyclical.

The given demand function for good X is in logarithmic form, which is often used in economics to estimate elasticities directly from the coefficients of the variables.

a. Good X is price inelastic. The price elasticity of demand is given by the coefficient of lnPx, which is -0.5 in this case. Since the absolute value of this coefficient is less than 1, we can say that Good X is price inelastic. This means that the quantity demanded of Good X is not very responsive to changes in its price.

b. Good X is not price elastic. As explained above, the price elasticity of demand for Good X is less than 1 in absolute value, which means it is inelastic, not elastic.

c. Good X is a normal good. The income elasticity of demand is given by the coefficient of Income, which is -0.1 in this case. Since this coefficient is negative, it means that as income increases, the demand for Good X decreases. This is characteristic of an inferior good, not a normal good.

d. The demand function does not provide information about whether the demand for Good X is cyclical. Cyclical demand refers to patterns of demand over time, often related to business cycles, seasons, or other time-based factors. This would require time series data, which is not provided in the demand function.