28 28 24 20 16 12 8 4 0 0 4 S1 S2 D2 D1 00 8 12 16 20 24

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assuming the change in demand from D1 to D2 was caused by a decrease in consumer income from $30,000 to $10,000, what is the income elasticity of demand at price=$20 is , and this is a product?

   

(a) 1/2 , inferior

   

(b) -2, inferior

   

(c) -1/2, inferior

   

(d) 1, normal

   

(e) 2, normal

28
28
24
20
16
12
8
4
0
0
4
S1
S2
D2
D1
00
8
12
16
20
24
Transcribed Image Text:28 28 24 20 16 12 8 4 0 0 4 S1 S2 D2 D1 00 8 12 16 20 24
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