Income elasticity: Judy's income has increased from $10,000 to $12,000. Judy increased her demand for concert tickets by 10 percent and decreased her demand for bus rides by 5 percent. a. Calculate Judy's income elasticity of demand for concert tickets b. Calculate Judy's income elasticity for bus rides.
Income elasticity: Judy's income has increased from $10,000 to $12,000. Judy increased her demand for concert tickets by 10 percent and decreased her demand for bus rides by 5 percent. a. Calculate Judy's income elasticity of demand for concert tickets b. Calculate Judy's income elasticity for bus rides.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Income elasticity:
Judy's income has increased from $10,000 to $12,000. Judy increased her demand for concert tickets by 10 percent
and decreased her demand for bus rides by 5 percent.
a. Calculate Judy's income elasticity of demand for concert tickets
b. Calculate Judy's income elasticity for bus rides.
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