udy’s income has increased from $10,000 to $12,000. Judy increased her demand for concert tickets by 10 percent and decreased her demand for bus rides by 5 percent. a. Calculate Judy’s income elasticity of demand for concert tickets b. Calculate Judy’s income elasticity for bus rides.

udy’s income has increased from $10,000 to $12,000. Judy increased her demand for concert tickets by 10 percent and decreased her demand for bus rides by 5 percent. a. Calculate Judy’s income elasticity of demand for concert tickets b. Calculate Judy’s income elasticity for bus rides.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 8E

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Judy’s income has increased from $10,000 to $12,000. Judy increased her demand for concert tickets by 10 percent and decreased her demand for bus rides by 5 percent.

a. Calculate Judy’s income elasticity of demand for concert tickets

b. Calculate Judy’s income elasticity for bus rides.

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