Calculate the income elasticity of demand (using the midpoint method) when average income increases from $20,000 to $30,000, when the price of a pencil is $4.50. * Quantity demanded (average income is $20,000) 2,400 1,600 800 Quantity demanded (average income is $30,000) 3,600 2,800 2,400 1,800 Pencil price $4.50 $5.50 $6.50 $7.50 400
Calculate the income elasticity of demand (using the midpoint method) when average income increases from $20,000 to $30,000, when the price of a pencil is $4.50. * Quantity demanded (average income is $20,000) 2,400 1,600 800 Quantity demanded (average income is $30,000) 3,600 2,800 2,400 1,800 Pencil price $4.50 $5.50 $6.50 $7.50 400
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 3SQP
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