The average income in an area increases from R40,000 per year to R60,000 per year. Sales of carpets increase by 10 per cent. Calculate the income elasticity of demand for this product. Is demand for it income elastic or inelastic?
The average income in an area increases from R40,000 per year to R60,000 per year. Sales of carpets increase by 10 per cent. Calculate the income elasticity of demand for this product. Is demand for it income elastic or inelastic?
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 5SQP: Suppose a university raises its tuition from 3,000 to 3,500. As a result, student enrollment falls...
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The average income in an area increases from R40,000 per year to R60,000 per year. Sales of carpets increase by 10 per cent. Calculate the income elasticity of demand for this product. Is demand for it income elastic or inelastic?
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