The coefficient of income in a regression of the quantity demanded of a commodity on price, income and other variables is 10. (a) Calculate the income elasticity of demand for this commodity at income of K10,000 and sales of 80,000 units.

The coefficient of income in a regression of the quantity demanded of a commodity on price, income and other variables is 10. (a) Calculate the income elasticity of demand for this commodity at income of K10,000 and sales of 80,000 units.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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