12. Demand-income elasticity for commodity K is determined as 1.15, and demand price elasticity is determined as -0.53. a) What kind of need can the product K be evaluated as? b) What can be said about the elasticity of the demand? c) How much will the consumption increase if the consumer income increases by 70%?
12. Demand-income elasticity for commodity K is determined as 1.15, and demand price elasticity is determined as -0.53. a) What kind of need can the product K be evaluated as? b) What can be said about the elasticity of the demand? c) How much will the consumption increase if the consumer income increases by 70%?
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 6PA: Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = 10,000)...
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12.
a) What kind of need can the product K be evaluated as?
b) What can be said about the elasticity of the demand?
c) How much will the consumption increase if the consumer income increases by 70%?
d) What should be the increase in the unit price if the consumption is halved?
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