Calculate the income elasticity of demand for the following examples and state whether they are a normal good or an inferior good. a. The income for Jacksonville, FL could increase over a 6-month period by 8 percent. During this time, the demand for golf clubs could increase by 12 percent. b. The income for citizens of Canada could increase 10 percent in one year. During this period, the demand for fast-food restaurants could decrease by 20 percent.

Calculate the income elasticity of demand for the following examples and state whether they are a normal good or an inferior good. a. The income for Jacksonville, FL could increase over a 6-month period by 8 percent. During this time, the demand for golf clubs could increase by 12 percent. b. The income for citizens of Canada could increase 10 percent in one year. During this period, the demand for fast-food restaurants could decrease by 20 percent.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 8E

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