D. As a result of an economic boom in Calgary, the average income increases from 2,800 to 7,700 per month and as a result the demand for new houses increases from 180 to 260 units. Part 7: The elasticity is Part 8: New houses are a(an) (inferior, normal, complements or substitutes)

D. As a result of an economic boom in Calgary, the average income increases from 2,800 to 7,700 per month and as a result the demand for new houses increases from 180 to 260 units. Part 7: The elasticity is Part 8: New houses are a(an) (inferior, normal, complements or substitutes)

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2.4P

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Question

100%

Calculate the elasticity for the following questions (USING THE MIDPOINT (AVERAGE) FORMULA) (Please Include The Negative signs in your answers where appropriate and calculate to 2 decimals)

D. As a result of an economic boom in
Calgary, the average income increases
from 2,800 to 7,700 per month and as a
result the demand for new houses
increases from 180 to 260 units.
Part 7: The elasticity is
Part 8: New houses are a(an) (inferior,
normal, complements or substitutes)

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