Suppose there is a type of sandwich loaf. When incomes increase by 9.5%, quantities demanded of this

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Suppose there is a type of sandwich loaf. When incomes increase by 9.5%, quantities demanded of this sandwich loaf increase by 4.5%. Calculate the income elasticity of demand for this sandwich loaf. Input the number to two decimal places.

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Microeconomics

ISBN: 978-1429283434

3rd edition

Authors: Paul Krugman, Robin Wells

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Posted Date: Mar 18, 2024 04:42 PM

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Suppose there is a type of sandwich loaf. When incomes increase by 9.5%, quantities demanded of this

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Expert Answer:

To calculate the income elasticity of demand E we use the formula E fracPerce... View the full answer

Microeconomics

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