Question

x X english to myanmar tra income elasticity for X X X ET What is Invisible Hand? les how to maximize profit O U A https://worldclassroom.webster.edu/courses/1354180/files/folder/PPTs?preview=60415445 Page < B > of 21 0 - Exercise Motorcycles cost 100,000 Demand is 100,000 a month for these motorcycles Average income is 20,000 Baht a month If the price of motorcycles stays the same, but average income rises to 25,000 Baht a month. If the demand for motorcycles now rises to 110,000, what is the income elasticity? Would motorcycles be considered a normal or inferior good? o search pre 8 7 6 5 ; L K E RTY U10 P H G F D в мм

Answer 1

Income & lasticity of demand = 1 Change in demoned Y change in ancome 7. Change in demand = ( 119,000 - 100.000 100000 = 10'l. to change in price = (25000-20,000 20.070 1 Je = 25 - 0.4 this is normal good. demand increases wilte rise in ancome