Calculate income elasticity of demand, Microeconomics

When Alex's income increased from $3,000 to $5,000, he increased his consumption of bagels from 4 to 8 a month and decreased his consumption of donuts from 12 to 6 a month. Calculate Alex's income elasticity of demand for

a. Bagels.

b. Donuts.

 

 

Posted Date: 2/27/2013 12:13:08 AM | Location : United States







Related Discussions:- Calculate income elasticity of demand, Assignment Help, Ask Question on Calculate income elasticity of demand, Get Answer, Expert's Help, Calculate income elasticity of demand Discussions

Write discussion on Calculate income elasticity of demand
Your posts are moderated
Related Questions
Assume that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. (The price floor is formally set at $16.10 per hundr

Do not submit more than 1 file in the Canvas submission link. A few years ago peanut farmers in India experienced a super-bumper crop due to favorable weather conditions. Initially




Economies of Scale The reduction in the cost of each additional unit produced as all factors of production increase. Factors contributing to economies of scale include discoun


clarify the opportunity cost theory

Slutsky's Theorem: Graphical Presentation  We prove here that own price effect is the sum of own substitution effect and income effect for a price change, which is known

use a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labour on an increase in immigration..