If the consumers' income increases from $200 to $300, the quantity demanded product X will  increase from 80 to 100 whereas, the quantity demanded product Y fall from 90 to 63. a.What is the income elasticity of demand for product X? b. What kind of product X to these consumers?  c. What is income elasticity of demand for product Y?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter6: Elasticities
Section: Chapter Questions
Problem 8P: If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000,...
icon
Related questions
Question

If the consumers' income increases from $200 to $300, the quantity demanded product X will 
increase from 80 to 100 whereas, the quantity demanded product Y fall from 90 to 63.
a.What is the income elasticity of demand for product X?
b. What kind of product X to these consumers? 
c. What is income elasticity of demand for product Y?
d.What kind of product Y to these consumers?

Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Elasticity of demand
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning