Suppose that household incomes in Sherbrooke changed from $48,600 to $59,400, and assuming no change in price, the quantity of a popular product sold changed from 35 to 45 cases per week. a) What is the value of the income elasticity of demand for a popular product? Round your answer to 3 decimal places. When applicable, remember to enter a minus (-) sign to indicate negative values. b) What does this suggest about this product? Luxury

Suppose that household incomes in Sherbrooke changed from $48,600 to $59,400, and assuming no change in price, the quantity of a popular product sold changed from 35 to 45 cases per week. a) What is the value of the income elasticity of demand for a popular product? Round your answer to 3 decimal places. When applicable, remember to enter a minus (-) sign to indicate negative values. b) What does this suggest about this product? Luxury

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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