Suppose that the management of Sun City resort is trying to understand the income elasticity of their resort. As an advisor, they provide you with the following figures; If the average income of visitors is R3 000 (which is the current income), then 45 000 visitors visit Sun City resort each year and if the average income increases to R5 000, then 60 000 visitors visit Sun City resort each year.     1. Calculate the income elasticity of demand using the arc method. (5) 2. Based on your answer above (1), explain what type of a product (service) the resort is.

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