A 10% rise consumer income results in a 4% decrease in the quantity demanded for pasta. the income elasticity of demand for past

Question

marusya05 [52]

3 years ago

10

A 10% rise consumer income results in a 4% decrease in the quantity demanded for pasta. the income elasticity of demand for past

a is

Business

1 answer:

Stells [14] · Answer 1 · 2022-09-25T18:17:31+03:00

The income elasticity of demand for pasta is -0.4 based on the data from the question above. The answer to this problem can be solved using the elasticity formula which stated as ED = Q percent change / I percentage change where ED is the elasticity of demand, Q is the quantity of the product, and I is the consumer's income<span>. (Calculation: -4%/10%=-0.4)</span>