Question

When my income was Rs . 10,000 spent I spent 40 % of my income on food , when the income doubled I spent only 20 % of my income on food . Calculate my income elasticity of demand for food ?​

Answer 1

Answer:

4000

Explanation:

when your income 10000 your spending on food 40% = 4000. then your income double meen 20000 and your spending on food 20% = 4000..

Answer 2

Y= 10000

Q= 4000

Y2=20000

Q2= 4000

ΔY= 10000

ΔQ=0

ey= 0/10000 * 10000/4000

=0