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Income Elasticity
Related Topics
Wize University Microeconomics Textbook > Elasticity
Income Elasticity
3 Activities
Diane gets a raise and her income increases from $800 per week to $1,200 per week. Because of her raise she decides to purchase 40 percent more soda each week. Diane's income elasticity for soda is
.40
1.0
4.0
.10
I don't know
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More Income Elasticity Questions:
An income elasticity of demand equal to 2.5 for a particular product means:
It is safe to assume that the income elasticity of demand for gourmet meals would be ________ the income elasticity of demand for meals from a junk-food restaurant.
Practice: Income Elasticity
For an inferior good, the income elasticity can have the value:
For an inferior good, the income elasticity can have the value