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
when does price and output determined in the unregulated monopoly

Price elasticity is used in economics to determine the changes in price of goods and services. It measures the change in price demanded and quality supplied. Determinants of pri

Comparison with Other Countries: The basic purpose of this type of comparison is that: (i) it helps us to know the potentials of growth that can be built up in an economy,

The demand functions for two related commodities are expressed as follows    Q 1 = (12P 2 3/4 ) / (P 1 1/2 ) Q 2 = (24P 1 2 ) / (P 2 3/5 ) Where Q 1  and Q 2 are d

An important aspect of municipal finance involves capital budgeting and resource allocation.  In some cases, resource allocations involve expenditures that are not directly revenue

Point elasticity: It refers to measurement of elasticity on a point On a demand curve. Point elasticity helps in measuring elasticity where change in price and quantity is infinite

What is the difference between change in quantity demanded and change in demand

related documents, photos,paper for permission from court etc.

using demand and supply curves explain how shortage and surplus are created

GIVE AND EXPLAIN IN DETAIL,ARGUMENTS GIVEN TO EXPLAIN LEONTIEF''S EMPERICAL FINDINGS ON THE HECKSCHER-OHLIN MODEL OF TRADE.