The income elasticities of demand for movies, dental services, and branded clothing have been estimated to be +3.4, +1.0, and +0.5 respectively. Interpret and link these coefficients with different kind of goods and services. (a) Name the economic tool you will use to help your advice? (b) What would it mean if the income elasticity coefficient is negative?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The income elasticities of demand for movies, dental services, and branded clothing have been estimated to be +3.4, +1.0, and +0.5 respectively. Interpret and link these coefficients with different kind of goods and services.

 

(a) Name the economic tool you will use to help your advice?

 

(b) What would it mean if the income elasticity coefficient is negative?

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