If the price of pepsi-cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 c
1 answer:
You might be interested in
Answer:
0.31
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
Percentage change in income = = 2.3
when income was $300, ramen was demanded twice, that is 2/7 times a week. converting to fraction gives 0.29
Percentage change in quantity = = 0.72
0.72/2.3 = 0.31