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Aleks [24]
3 years ago
10

If the income elasticity for computers is 1.2, and incomes increase by 10%, the demand for computers, using one decimal place an

d the negative sign if necessary, will increase by _____%.
Computers and Technology
1 answer:
yarga [219]3 years ago
7 0

Answer:

The answer is "12.0%".

Explanation:

Economically, price elasticity makes a clear distinction between a consumer's production and a consumer's earnings.  

  • In this question, income elasticity is given that is "1.2", and incomes increase percentage is given, that is 10%.
  • The total income elasticity is in percentage is 1.2 \times 10 \% \ = 12.0\  \%.
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