Jorge’s salary increased from P12, 500 to P13, 800 consequently his consumption for good X increased from 30 to 35. Compute for the income elasticity of demand and indicate if good X is a normal, inferior or luxury good.

Jorge’s salary increased from P12, 500 to P13, 800 consequently his consumption for good X increased from 30 to 35. Compute for the income elasticity of demand and indicate if good X is a normal, inferior or luxury good.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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