What is the average monthly salary in country a

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Reference no: EM13199583

The average family in country A spends 60 percent of their disposable income on residence. The average family in country B spends 25 percent of their disposable income on residence. The average monthly salary in country A is $2,500 and in country B is $7,500.

Assume that:

* aside from the difference in income between the families in the 2 countries, the families are identical

* the relationship between the price of residence and the price of other products are identical in the two countries

What is the demand flexibility to residence in relationship to income?

Reference no: EM13199583

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