Question: A consumer initially maximizes utility at point A with income of Y = $240 spent on coffee and biscuits. Then, suppose income increases, shifting the

A consumer initially maximizes utility at point A with income of

A consumer initially maximizes utility at point A with income of Y = $240 spent on coffee and biscuits. Then, suppose income increases, shifting the budget constraint from L1 to L2, where the consumer maximizes utility at bundle B. Using the new level of income, calculate the income elasticity of coffee (coee) between bundleAand bundle B. gcoee = D. (Enter a numeric response using a real number rounded to two decimal places.) Biscuits '000 2.00 4.00 6.00 8.00 Coffee 10.00 12.00 14.00

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