The following questions are about income elasticity of demand. 9) Mr. Leon's income increased by 10%. (His "mommy" gave him a raise in his allowance because he was a "good little boy.") His consumption of Lego's then increased by 25%. Calculate his income elasticity. Does this imply that Lego's are a regular or an inferior product for Mr. Leon? 10) Mr. Mendivil's income increased by 20%. His consumption of pictures of Mr. Leon then decreased by 100%. Calculate the income elasticity of demand for the product. Does this imply that pictures of Mr. Leon are regular or inferior products? I 11) Larry the Wild & Crazy Monkey saw a decrease in his income by 25%. With this, his consumption of berries increased by 50%. Calculate his income elasticity of demand. What can we conclude about berries as a consumer good for Larry the Wild & Crazy Monkey? Explain.
The following questions are about income elasticity of demand. 9) Mr. Leon's income increased by 10%. (His "mommy" gave him a raise in his allowance because he was a "good little boy.") His consumption of Lego's then increased by 25%. Calculate his income elasticity. Does this imply that Lego's are a regular or an inferior product for Mr. Leon? 10) Mr. Mendivil's income increased by 20%. His consumption of pictures of Mr. Leon then decreased by 100%. Calculate the income elasticity of demand for the product. Does this imply that pictures of Mr. Leon are regular or inferior products? I 11) Larry the Wild & Crazy Monkey saw a decrease in his income by 25%. With this, his consumption of berries increased by 50%. Calculate his income elasticity of demand. What can we conclude about berries as a consumer good for Larry the Wild & Crazy Monkey? Explain.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![11
BIUA
+
Arlal
I| II1 I I 2
The following questions are about income elasticity of demand.
9) Mr. Leon's income increased by 10%. (His "mommy" gave him a raise in his allowance
because he was a "good little boy.") His consumption of Lego's then increased by 25%.
Calculate his income elasticity. Does this imply that Lego's are a regular or an inferior product
for Mr. Leon?
10) Mr. Mendivil's income increased by 20%. His consumption of pictures of Mr. Leon then
decreased by 100%. Calculate the income elasticity of demand for the product. Does this imply
that pictures of Mr. Leon are regular or inferior products?
11) Larry the Wild & Crazy Monkey saw a decrease in his income by 25%. With this, his
consumption of berries increased by 50%. Calculate his income elasticity of demand. What can
we conclude about berries as a consumer good for Larry the Wild & Crazy Monkey? Explain.
ip
lili
司](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d63b6c8-0749-4b92-abdc-13bfaeee9042%2Fed66853d-4e5a-4ae6-947f-feb2726d7210%2Fs64qy6n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:11
BIUA
+
Arlal
I| II1 I I 2
The following questions are about income elasticity of demand.
9) Mr. Leon's income increased by 10%. (His "mommy" gave him a raise in his allowance
because he was a "good little boy.") His consumption of Lego's then increased by 25%.
Calculate his income elasticity. Does this imply that Lego's are a regular or an inferior product
for Mr. Leon?
10) Mr. Mendivil's income increased by 20%. His consumption of pictures of Mr. Leon then
decreased by 100%. Calculate the income elasticity of demand for the product. Does this imply
that pictures of Mr. Leon are regular or inferior products?
11) Larry the Wild & Crazy Monkey saw a decrease in his income by 25%. With this, his
consumption of berries increased by 50%. Calculate his income elasticity of demand. What can
we conclude about berries as a consumer good for Larry the Wild & Crazy Monkey? Explain.
ip
lili
司
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