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
Chapter1: Making Economics Decisions
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff53eb250-5103-433f-a882-915aa4d88212%2F9628ecdf-d4f8-404a-ace4-35f9bf0a969c%2Fml6hlc_processed.png&w=3840&q=75)
Transcribed Image Text: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
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