Find quantity demand if household income were to rise

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Reference no: EM13209512

If the income elasticity of cigarettes sold in China is 1.5:
a) What would happen to the quantity demanded of cigarettes if income increases?
b) Are cigarettes a "normal" or "inferior" good?
c) What would happen to the quantity demanded if household income were to rise by 1% next year?

Reference no: EM13209512

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