Suppose that household incomes in Sherbrooke changed from $48,600 to $59,400, and assuming no change in price, the quantity of a popular product sold changed from 35 to 45 cases per week. a) What is the value of the income elasticity of demand for a popular product? Round your answer to 3 decimal places. When applicable, remember to enter a minus (-) sign to indicate negative values. b) What does this suggest about this product? Luxury

Suppose that household incomes in Sherbrooke changed from $48,600 to $59,400, and assuming no change in price, the quantity of a popular product sold changed from 35 to 45 cases per week. a) What is the value of the income elasticity of demand for a popular product? Round your answer to 3 decimal places. When applicable, remember to enter a minus (-) sign to indicate negative values. b) What does this suggest about this product? Luxury

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2SQP

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