Question: The estimated market demand function for a product is Q = 40 - 4P + 0.1I, where Q is the quantity demanded of a product,

  1. The estimated market demand function for a product is

Q = 40 - 4P + 0.1I,

where Q is the quantity demanded of a product, P is the price of a product, P = $10; and I is the average income, I = $100.

What is the income elasticity of demand?

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