if demand increased by 50percent due to an increase in income by 75% calculate the income elasticity of demand
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7
Answer:
2/3
Explanation:
The income elasticity of demand is the percentage change in demand due to percentage change in income. This is given as
Given changes the income elasticity of demand is
ciyapradhan:
Thank you so much for your help.
Answered by
32
% change in quantity demanded = 50%
% change in price = 75%
(In the question, it is mentioned that % change in income is 75% but it would be taken as % change in price because income of the consumer has direct impact on price of the commodity.)
Elasticity of demand (Ed) = ?
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