Consider the following demand function for good 'X':Q = 9-0.1p, - Py + 0.01p, + 0.001Y, wherePrice of a related good, P= $3Price of a related good, P, = $275Own price, P,= $30Quantity demanded = 35.75Consumer income, Y = $30,000The income elasticity of demand, E, when eguilibrium quantity is 35.75 units and income is $30,000 is equal to. (Enter a numeric response using a real numberrounded to three decimal places.)O etvMacBook AirDIIDD80F10F7F8F4F5F2F3EI$%&!@79134QWERTYDFHJKACVNMcommandtioncommand.. .-V -* 00* :

Income elasticity of demand depicts how much consumer responds with the change in his income.

Answered: Consider the following demand function…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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