Income of a person is 8000 and he uses 60 units of a commodity. Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50% Calculate 1. New income 2. New consumption 3. Income elasticity 4. Nature of good

Income of a person is 8000 and he uses 60 units of a commodity. Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50% Calculate 1. New income 2. New consumption 3. Income elasticity 4. Nature of good

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6CQQ: Over time, technological advance increases consumers incomes and reduces the price of smartphones....

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Question#3: (4 marks)

Income of a person is 8000 and he uses 60 units of a commodity. Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50%

Calculate

1. New income

2. New consumption

3. Income elasticity

4. Nature of good

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Over time, technological advance increases consumers incomes and reduces the price of smartphones. Each of these forces increases the amount consumers spend on smartphones if the income elasticity of demand is greater tha____________ and if the price elasticity of demand is greater than_____________. a. zero, zero b. zero, one c. one. zero d. one, one
Income of a person is Rs.8000 and he uses 60 units of a commodity. 1. Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50%. Also calculate 2. New income 3. New consumption 4. Nature of good
Income of a person is Rs.8000 and he uses 60 units of a commodity.Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50%. Also calculate New income New consumption Nature of good
Income of a person is Rs.8000 and he uses 60 units of a commodity. Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50%. Also calculate    2.New income 3.New consumption 4.Nature of good
Income of a person is Rs.8000 and he uses 60 units of a commodity. Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50%. New income New consumption    Nature of good
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Income of a person is Rs.8000 and he uses 60 units of a commodity. Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50%.
Question#6 Quantities PurchasedQuantities Purchased IncomePricesGood XGood Y $30,000Px = $6, Py = $3220 50,000Px = $6, Py = $4510 Refer to Table.Using the information in the table, calculate the income elasticity of demand for good X and characterize the good. Use the midpoint formula. Can you calculate the income elasticity of demand for good Y? If you can, show your calculation and characterize the good. If you cannot, explain why.