QUESTION 5 Study table 5.1 below and answer the question that follows Table 5.1 2020 A.-0.8% B.-2% C.-2.5% D.-25% Average weekly pocket money for senior primary kids Cornetto ice cream is a popular snack bought by kids in senior primary school. Cornetto's income elasticity of demand is estimated to be -0.1. Calculate the percentage change in quantity demanded for Cornetto ice cream between 2020 and 2021, ceteris paribus: 2021 R7 R8.75

QUESTION 5 Study table 5.1 below and answer the question that follows Table 5.1 2020 A.-0.8% B.-2% C.-2.5% D.-25% Average weekly pocket money for senior primary kids Cornetto ice cream is a popular snack bought by kids in senior primary school. Cornetto's income elasticity of demand is estimated to be -0.1. Calculate the percentage change in quantity demanded for Cornetto ice cream between 2020 and 2021, ceteris paribus: 2021 R7 R8.75

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The schedule below shows the quantities of shoes demanded at each income level in a community from 2020 to 2021: Year Income (R) Quantity (units) 2020 5 000 1 000 2021 6 500 900 3.1 Calculate the income elasticity of demand, using the arc method and interpret your result. 3.2 List any four factors that could result in the shoes having inelastic price elasticity of demand. 3.3 Explain the importance of understanding the relationship between price elasticity of demand and total revenue.
(A) Define the price elasticity of demand (B) Calculate the price elasticity of demand given that price rise by 10% and demand falls by 4% Please be quick
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