Below are some income and consumption data from Indonesia (Leathers and Foster). Please complete the table...

 

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Below are some income and consumption data from Indonesia (Leathers and Foster). Please complete the table by calculating the income elasticities for calories and proteins in Indonesia. 1. Show your work for the income elasticity of calories as incomes increase from 2,500 to 3,500 in the space below the table. 2. The other elasticities you can fill in. Income 2,500 3,500 4,500 5,500 7,000 9,000 12,500 Consumption of Calories 1870 2034 2084 2288 2533 2794 3066 Income Elasticity for Calories XXXX 0.219 0.09 0.44 0.39 0.36 0.25 Consumption of Protein 32.3 40.2 47.0 52.7 60.9 69.7 79.1 Income Elasticity for Protein XXXX 3. What conclusions can you draw from the pattern of elasticities you calculated for calories and proteins? 4. If the income elasticities for calories and proteins in Indonesia are representative of consumer behavior in developing countries generally, what implications do these elasticities have for world food issues? Below are some income and consumption data from Indonesia (Leathers and Foster). Please complete the table by calculating the income elasticities for calories and proteins in Indonesia. 1. Show your work for the income elasticity of calories as incomes increase from 2,500 to 3,500 in the space below the table. 2. The other elasticities you can fill in. Income 2,500 3,500 4,500 5,500 7,000 9,000 12,500 Consumption of Calories 1870 2034 2084 2288 2533 2794 3066 Income Elasticity for Calories XXXX 0.219 0.09 0.44 0.39 0.36 0.25 Consumption of Protein 32.3 40.2 47.0 52.7 60.9 69.7 79.1 Income Elasticity for Protein XXXX 3. What conclusions can you draw from the pattern of elasticities you calculated for calories and proteins? 4. If the income elasticities for calories and proteins in Indonesia are representative of consumer behavior in developing countries generally, what implications do these elasticities have for world food issues?

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To calculate the income elasticities for calories and proteins we can use the following formula Income Elasticity Q2 Q1 Q1 I2 I1 I1 Where Q1 and Q2 ar... View the full answer