The income elasticity of demand for bagels is 0.48. Bagels is a normal good. Income elasticity of demand for donuts is -0.31. Donuts is an inferior goods.
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What is income elasticity of demand?</h3>
Income elasticity of demand measures how the quantity demanded of a good changes when there is a change in income. Inferior goods have a negative income elasticity. Normal goods have a positive income elasticity.
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
Income elasticity of demand for bagels:
percentage change in quantity demanded = (10 /6) - 1 = 0.667 = 66.7%
percentage change in income = ($6000 / $2500) - 1 = 1.4 = 140%
Income elasticity of demand = 66.7 / 140 = 0.48
Income elasticity of demand for donuts:
percentage change in quantity demanded = (8/14) - 1 = -0.429 = 42.9%
percentage change in income = ($6000 / $2500) - 1 = 1.4 = 140%
Income elasticity of demand = -42.9/ 140 = -0.31
To learn more about income elasticity, please check: brainly.com/question/26580369
Answer:
B.
Moist winds are forced upward by high landforms.
Explanation:
Answer: contour lines.
Topographic maps are easily recognized by their contour lines.
Answer What unit are u on and what is is test quiz assignment, Bc i have all the answers to them not sure what ur on :/
Explanation:
Because hot air is less heavy cold air is more heavy causing them to shift if cold air is placed on top.