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Marina86 [1]
3 years ago
13

Blake eats two bags of potato chips each day. Blake's hourly wage increases from $9 to $15, and he decides to stop eating generi

c chips and instead eats a name brand potato chip. Use the midpoint method to calculate Blake's income elasticity of demand for generic potato chips.
Business
1 answer:
max2010maxim [7]3 years ago
8 0

Answer:

-4 units

Explanation:

Using the midpoint method, Blake's income elasticity of demand for generic potato chips is given by the change in demand (D) multiplied by his average income (I), divided by the change in income multiplied by the average demand:

E=\frac{\Delta D}{\Delta I}*\frac{I_{avg}}{D_avg}\\E=\frac{0-2}{15-9}*\frac{\frac{9+15}{2}}{\frac{2+0}{2} }\\E=-4\ units

Blake's income elasticity of demand is -4 units.

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Explanation:

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Therefore, it describe that the Livy gas utility bill does not rise up during the shortage of the natural gas.

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The reasons why some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor are as follows:

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brainly.com/question/28060453

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