Suppose that individual’s income has increased from RO 800 to 1700 which causes an increase in the quantity demand from Rice that his family consumes from 7 kg to 18 kg. Calculate the income elasticity of demand. Show weather Rice inferior or normal good and why.

Suppose that individual’s income has increased from RO 800 to 1700 which causes an increase in the quantity demand from Rice that his family consumes from 7 kg to 18 kg. Calculate the income elasticity of demand. Show weather Rice inferior or normal good and why.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 8SCQ: The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year...

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Suppose that individual’s income has increased from RO 800 to 1700 which causes an increase in the quantity demand from Rice that his family consumes from 7 kg to 18 kg.

Calculate the income elasticity of demand.

Show weather Rice inferior or normal good and why.

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