The average income in an area increases from R40,000 per year to R60,000 per year. Sales of carpets increase by 10 per cent. Calculate the income elasticity of demand for this product. Is demand for it income elastic or inelastic?

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A: Given,    prices as  P1=$2.00P2=$2.50 and quantity  asQ1=10000Q2=8500

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A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: The demand of a commodity falls by 20% and the price rise by 30%  Calculate the elasticity of…

A: # when we are given the value of the change in demand and change in price then in such situation we…

Q: Suppose the income elasticity of demand for food is 0.4. If peoples incomes rise by 12.5%, what…

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Q: A consumer buys 100 units of a good at a price of 8 per unit if the price elasticity of demand is -2…

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