Calculate the income elasticity of demand for the following demand functions and assess its magnitude (is the
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Question:
- Calculate the income elasticity of demand for the following demand functions and assess its magnitude (is the good normal, inferior, a luxury or a necessity?).
- Q =50 -10p + 3Y, at p = 2 and Y = 20
- Q = 5 - 20p + 4Y, at p = 1 and Y = 50
- Q = 70 – 3p – 2Y, at p = 15 and Y = 5
- Q = 35 - 20p + 0.5Y, at p = 1.5 and Y = $1,000,000,000
Related Book For
Microeconomics A Contemporary Introduction
ISBN: 978-1111415921
9th edition
Authors: William A. McEachern
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