steven's income decreased from $1,800 a month to $1,200 a month when he went back to school. as a result, he cut back on trips t

Question

2 years ago

8

o his favorite gyro stand, from 15 to 10. what is steven's income elasticity?

1 answer:

Ymorist [56] · Answer 1 · 2023-06-27T22:03:06+03:00

Steven's income elasticity is 0.83

<h3>How to calculate the income elasticity ?</h3>

Income elasticity can be described as the change in the quantity demanded by the change in the income

Steven's income decreased from $1800 to $1200

His trips also decreased from 15 to 10

The Income elasticity can be calculated as follows

= 15 -10/(1800-1200) × 100

= 5/600 × 100

= 0.00833 × 100

= 0.83

Hence the income elasticity is 0.83