The demand for tables is given by Qd = 200 - 2P+ Y, where Y is income. The supply of tables is given by Qs = 40 + 3P. If income is $20, what is the income elasticity of demand for tables at equilibrium? Select one: A. 0.29 B. 0.14 1.00 D. 7.40

The demand for tables is given by Qd = 200 - 2P+ Y, where Y is income. The supply of tables is given by Qs = 40 + 3P. If income is $20, what is the income elasticity of demand for tables at equilibrium? Select one: A. 0.29 B. 0.14 1.00 D. 7.40

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The demand for tables is given by Qd = 200 - 2P + Y, where Y is income. The supply of tables is given
by Qs = 40 + 3P. If income is $20, what is the income elasticity of demand for tables at equilibrium?
Select one:
A.
0.29
B.
0.14
Oc.
1.00
OD.
7.40

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