Answered: Suppose that the income elasticity of…

Suppose that the income elasticity of demand for a product is 1.5. What will be the percentage decrease in demand for this product if income falls by 1.3%?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 1QR

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Suppose that the income elasticity of demand for a product is 1.5.
What will be the percentage decrease in demand for this product if income falls
by 1.3%?

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