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Joon's Marshallian demand function for good X and Y is I given by: X* Suppose that Px=3, a = 0.8, ß = 2.Px (a+B) 0.3 and I=16 The income elasticity of demand of good X is

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Question

Find the income elasticity of demand of good x

Joon's Marshallian demand function for good X and Y is
I
given by: X*
Suppose that Px=3, a = 0.8, ß =
2.Px (a+B)
0.3 and I=16
The income elasticity of demand of good X is

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