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Use the figure below to answer Q9 & Q10: i Price ($) 0 900 A B D' (M $30,000) D (M $25,000) Qx 1,100 Quantity of good X Q9. What is the income elasticity of demand when income increases from $25,000 to $30,000? A. -1.10 B. -0.10 C. 0.18 D. 0.20 E. 1.10 Q 10. Based on the results, what can we conclude about this particular good? A. It is a normal good. B. It is an inferior good. C. It is a Giffen good. D. It has no close substitutes.

Use the figure below to answer Q9 & Q10: i Price ($) 0 900 A B D' (M $30,000) D (M $25,000) Qx 1,100 Quantity of good X Q9. What is the income elasticity of demand when income increases from $25,000 to $30,000? A. -1.10 B. -0.10 C. 0.18 D. 0.20 E. 1.10 Q 10. Based on the results, what can we conclude about this particular good? A. It is a normal good. B. It is an inferior good. C. It is a Giffen good. D. It has no close substitutes.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Use the figure below to answer Q9 & Q10: i Price ($) 0 900 A B D' (M $30,000) D (M $25,000) Qx 1,100 Quantity of good X Q9. What is the income elasticity of demand when income increases from $25,000 to $30,000? A. -1.10 B. -0.10 C. 0.18 D. 0.20 E. 1.10 Q 10. Based on the results, what can we conclude about this particular good? A. It is a normal good. B. It is an inferior good. C. It is a Giffen good. D. It has no close substitutes.
Transcribed Image Text:Use the figure below to answer Q9 & Q10: i Price ($) 0 900 A B D' (M $30,000) D (M $25,000) Qx 1,100 Quantity of good X Q9. What is the income elasticity of demand when income increases from $25,000 to $30,000? A. -1.10 B. -0.10 C. 0.18 D. 0.20 E. 1.10 Q 10. Based on the results, what can we conclude about this particular good? A. It is a normal good. B. It is an inferior good. C. It is a Giffen good. D. It has no close substitutes.
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