Mary buys 27 tuna sandwiches when her income is $37. Her income rises to $45 and now she buys 2 tuna sandwiches. What is Mary's income elasticity of demand? (Use the midpoint method for your calculations and round your answer to two decimal places.
Mary buys 27 tuna sandwiches when her income is $37. Her income rises to $45 and now she buys 2 tuna sandwiches. What is Mary's income elasticity of demand? (Use the midpoint method for your calculations and round your answer to two decimal places.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Mary buys 27 tuna sandwiches when her income is $37. Her income rises to $45 and now she buys 2 tuna sandwiches. What is Mary's income elasticity of demand ? (Use the midpoint method for your calculations and round your answer to two decimal places.)
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Income elasticity of demand depicts how much buyer responds with the change in his/her income.
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