Homework Answers
(Question A)
(1) Using midpoint method,
Income elasticity = (Change in quantity / Average quantity) / (Change in income / Average income)
= [(7 - 4) / (7 + 4)] / [(102,750 - 82,750) / (102, 750 + 82,750)]
= (3 / 11) / (20,000 / 185,500)
= 2.53
(2) Since income elasticity > 0, it is a normal good.
(3) Since income elasticity > 1, it is elastic.
NOTE: As HOMEWORKLIB Answering Policy, 1st question has been answered.
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some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
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