Question

y un mand between Ford and Chevy trucks? Income Quantity demanded (dollars) pounds per year) 18,000 22.000 140 6. The table above gives Sharon's demand for ground beef at two different income levels. Use the midpoint method in this problem. a. What is the percentage change in Sharon's income? b. What is the percentage change in the quantity demanded? c. What is Sharon's income elasticity of demand for ground beef? d. Is ground beef a normal or an inferior good for Sharon? B) unit to

Answer 1

I = 18,000 d = to I = 22,000 (a) Percentage Income change in Sharon, lo 1(22,000 - 18,000) 1122,000+ 18,000 2 Yooo 20,000 (6) Percentage change in quantity

120 Mo-bo 14ot bo H2 • (6) East Income elasticity of demand - Percentage change in Quantity - Percentage change in Income 80% a Because 12 is greater ground beef & income elasticity of demand than zero. This implies that is a normal good for Sharon