When Alexs income was $3,000, he bought 4 bagels and 12 donuts a month. Now his income
Question:
When Alex’s income was $3,000, he bought 4 bagels and 12 donuts a month. Now his income is $5,000 and he buys 8 bagels and 6 donuts a month. Calculate Alex’s income elasticity of demand for
(a) bagels and
(b) donuts.
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