8, calculate the income elasticity of demand from the fo. lowing data (use the arc or average). Income Quantity Demanded 15,000 20,000 20,000 30,000 A, Explain why the value is a positive number. B Explain what would happen to a demand curve as income changes if the income elasticity was 2.0. Compare that outcome to the situation that would occur if the income elasticity of demand was 0.2
8, calculate the income elasticity of
|
Income |
Quantity Demanded |
|
15,000 |
20,000 |
|
20,000 |
30,000 |
A, Explain why the value is a positive number.
B Explain what would happen to a demand curve as income changes if the income elasticity was 2.0.
Compare that outcome to the situation that would occur if the income elasticity of demand was 0.2.
13,using the following equation for the demand for a god or service, calculate the price elasticity of demand(using the point form), cross-price elasticity with good x, and income elasticity.
Q = 8 - 2P + 0.101 + Px
Q is quantity demanded, P is the product price, P.
is the price of a related good, and I is income. Assume
that P= $10, 1 = 100, and Px = 20.
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