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Maksim231197 [3]
3 years ago
12

Becky only eats out at Macaroni Grill and eats out 3 times per month. She receives a raise fro $31,900 to $33,500 and decided to

eat out 5 times per month. Use the midpoint method to calculate the monthly income elasticity of demand for eating out.
This good is

A. A normal good and income elastic.
B. A normal good and income in-elastic
C. An inferior good
Business
1 answer:
ololo11 [35]3 years ago
6 0

Answer:

Since elasticity is 6.4, a positive figure,it is normal good and the fact that it is greater than one means it is elastic,hence option A is correct

Explanation:

The formula for income elasticity of demand is given as:

/(new quantity-old quantity)//(old price+new price)/2)/(New income-Old income)/(old income+new income)/2)

New income=$33,000

Old income=$31,900

New quantity =5 times

Old quantity=3 times

Hence=(5-3)/(3+5)/2)/(33500-31900)/(31900+33500)/2)

Elasticity=6.45

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Answer:

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3 years ago
According to the liquidity premium theory of the term structure of interest rates, if the one-year bond rate is expected to be 4
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4 0
3 years ago
the original penguin clothing brand which features a cute penguin with a tie wrapped around its neck has made a successful comeb
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7 0
2 years ago
An oil refinery must now begin sending its waste liquids through a costly treatment process before discharging them. The enginee
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Answer:

Option A is the cheapest.

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Giving the following information:

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Read 2 more answers
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