Consider the data in the table below for a hypothetical economy.AverageHouseholdQty DemandedPrice ofGasolineIncome ($) Gasoline ($/litre)77.400Year(millions of litres)20091.271,9402,040201082,700127Calculate the income elasticity of demand for gasoline in this economy.O A. 1.14O B. 0.38OC. 2.28O D. 1.52O E. 0.76

Given:Initial income=I0=77,400New income=I1=82,700Initial quantity demanded=Q0=1,940New quantity…

Consider the data in the table below for a hypothetical economy. Average Household Qty Demanded Price of Gasoline Income ($) Gasoline ($/litre) 77,400 82,700 Year (millions of litres) 2009 1.27 1.27 1,940 2,040 2010 Calculate the income elasticity of demand for gasoline in this economy. A. 1.14 B. 0.38 C. 2.28 D. 1.52 O E. 0.76 O O O OO

Consider the data in the table below for a hypothetical economy. Average Household Qty Demanded Price of Gasoline Income ($) Gasoline ($/litre) 77,400 82,700 Year (millions of litres) 2009 1.27 1.27 1,940 2,040 2010 Calculate the income elasticity of demand for gasoline in this economy. A. 1.14 B. 0.38 C. 2.28 D. 1.52 O E. 0.76 O O O OO

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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