A company had sales revenue of $900,000 for the year. In addition, the following information is available related to the cost of
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Answer:
0.31
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
Percentage change in income = = 2.3
when income was $300, ramen was demanded twice, that is 2/7 times a week. converting to fraction gives 0.29
Percentage change in quantity = = 0.72
0.72/2.3 = 0.31