Income of a person is Rs.8000 and he uses 60 units of a commodity.   Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50%.

Q: a price change causes the quantity demanded of a good to fall by 30%, while total revenue rose by…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Q: Mr. Ali was buying 10 kg of sugar when the price of one kg was Rs 100. Now the price has come down…

A: Elasticity refers to a criteria which measures the responsiveness of one variable due to the change…

Q: Calculate income elasticity for the household when the income of a household rises by 10% and the…

A:

Q: None

A: Elasticity is a measure of how the quantity demanded or supplied of a good changes in response to a…

Q: Zia use to buy 10 pieces of Good X given a price of 10 pesos per piece. When the price of good Y…

A: There are two goods, i.e., X and Y An increase in the price of good Y by 15 percent will decrease…

Q: After Peter’s income increased from $100 to $200, his purchases of tuna fish decreased from 5 cans…

A: Income elasticity tells us that how much quantity demanded will change with the change in income of…

Q: Data from the Bureau of Labor Statistics shows that U.S. income increased by 10% while consumer data…

A: Change in income=10% Change in quantity demanded=∆in quantity demandedInitial quantity…

Q: Apple sells 6.5 million AirPods at $149 each. Apple reduces the price to $120 and unit sales volume…

A: given that, volume increases from 6.5 million AirPods  to 8.45 million AirPods price reduces from…

Q: The demand for orange at price $10 is 100 and at price the $8 the demand is 150. Find the elasticity…

A: Initial price(P) = $10 Final price(P1)  = $8 Initial quantity(Q) = 100 units Final quantity(Q1) =…

Q: Mr. Ahmed was having salary of RO 800 and also was demanding goods of 50 Kgs. Recently his salary…

A: The quantity demanded of a good or service and its price movements can be measured by using…

Q: Price of beef increases by 12% and the quantity of beef demanded falls by 10%. Calculate the…

A: Elasticity of Demand: Elasticity of Demand is the degree of responsiveness of demand to changes in…

Q: When Alex's income was $6,000, he bought 2 bagels and 12 donuts a month. Now his income is $8,000…

A: Income elasticity of demand measures the responsiveness of quantity demanded of a good with respect…

Q: An individual gets a raise, increasing their income by 2.5%. As a result, their consumption of a…

A: Income elasticity of demand is equal to the percentage change in quantity demanded divided by the…

Q: Alex's income has increased from 3000Php. to 5000Php. Alex increased his consumption of CD from 4 to…

A: Income elasticity of demand is the ratio of percentage change in quantity demanded and percentage…