Table 4 Income $30,000 $40,000 Quantity of Good X Purchased 2 6 Quantity of Good Y Purchased 20 10 Refer to Table 4. Using the midpoint method, the income elasticity of demand for good Y is Select one: O a. -2.33, and good Y is an inferior good. O b. 2.33, and good Y is a normal good. O c. -0.43, and good Y is a normal good. O d. -0.43, and good Y is an inferior good. E
Table 4 Income $30,000 $40,000 Quantity of Good X Purchased 2 6 Quantity of Good Y Purchased 20 10 Refer to Table 4. Using the midpoint method, the income elasticity of demand for good Y is Select one: O a. -2.33, and good Y is an inferior good. O b. 2.33, and good Y is a normal good. O c. -0.43, and good Y is a normal good. O d. -0.43, and good Y is an inferior good. E
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...
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Transcribed Image Text:Table 4
Income
$30,000
$40,000
Quantity of Good X
Purchased
2
6
Quantity of Good Y
Purchased
20
10
Refer to Table 4. Using the midpoint method, the income elasticity of demand for good Y is
Select one:
O a. -2.33, and good Y is an inferior good.
O b. 2.33, and good Y is a normal good.
O c. -0.43, and good Y is a normal good.
O d. -0.43, and good Y is an inferior good.
E
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