When Ahmed's income was $2,00, he bought 6 bagels and 10 donuts a month. Now his J income is $1,500 and he buys 4 bagels and 12 donuts a month. Calculate Ahmad's income elasticity of demand for bagels and donuts. And explain their meanings and the type of goods Ahmed's dealing with and why?

Managerial Economics: A Problem Solving Approach
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Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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When Ahmed's income was $2,00, he bought 6 bagels and 10 donuts a month. Now his J income is $1,500 and he buys 4 bagels and 12 donuts a month.

Calculate Ahmad's income elasticity of demand for bagels and donuts. And explain their meanings and the type of goods Ahmed's dealing with and why?

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