Q9 What is the income elasticity ofdemand in problem 6, and what type ofproduct apple is based on thisinformation?O 9/2, normalQ9O 2/9, necessityO -9/5, inelasticO -1/9, inferior.All the other answers are wrong. Q6The demand function for applesis the following.Qn = 10 - Pn + 0.2Y +0.5 P.- 2P, + 0.2AWhere:Qn = annual sales of apples(millions of kilos)Pn = price of apples (£1 per kilo)Y = disposable income in theUK £trillions (£10 trillions)Pc = price of a pies £ per kilo (£2per kilo)Ps = price of pear (£2 per kilo)A = advertising measured inhundreds of thousands of £5(use as 5 in your calculations)

Answer for #9 Income elasticity of demand measures the responsiveness in quantity demanded of a…

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ENGR.ECONOMIC ANALYSIS

14th Edition

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Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the unemployment related to the Covid-19pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income elasticity of demand for rice isapproximately -0.5. Given that rice is agood, the manager should stockrice.O A. normal: 109 moreO B. inferior: 12.595 moreO C. inferior: 12.59 lessO D. normal: 12.596 less
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What is the income elasticity of demand in problem 6, and what type of product apple is based on this information? Q9 O 9/2, normal O 2/9, necessity O-9/5, inelastic O -1/9, inferior. O All the other answers are wrong.