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Serhud [2]
3 years ago
8

Arista always spends 10 % of her income on gizmos. Assume that her income increases by some percentage while the price of gizmos

remains constant (and that all gizmos cost the same). What is her income elasticity of demand for gizmos?
Business
1 answer:
lina2011 [118]3 years ago
3 0

Answer:

1

Explanation:

Income elasticity is how the quantity demanded of a product changes due to a change in the income of an individual.

The formula for calculating Income elasticity of demand is, percentage change in quantity demanded divided by the percentage change in income.

Here the income of Arista increases but the price of gizmos remains the same, that is why the 10% now will be more than what it used to be before the increase in income.

Hope this helps. Good luck.

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Since mortgage interest relates to personal home, it is not deductiable.

5 0
3 years ago
At Ultrinsic, students pay a small entry fee to compete in grades-based contests for cash prizes. Suppose that 10 students from
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