Question

Based on the following table which indicates expenditure of the household on a
commodity, answer the questions that follow ( The price of the good is Br.10)
Income
Quantity Demanded
(Br. / month)
units/ month)
10,000
50
20,000
60
30,000
70
40,000
80
50,000
90
A) Calculate income elasticity of demand, if income increases from Br.10, 000 to Br.
20,000 and if income increases from Br.40, 000 to Br. 50,000.
B) Is this a normal or an inferior or a luxury good? Justify.
C) Does the proportion of household income spent on this good increase or decrease as
income increases? .Why?​

Answer 1

Answer:

22

Explanation:

BECAUSE I WANT POINTS