Ask Question
22 September, 12:18

A 10% rise consumer income results in a 4% decrease in the quantity demanded for pasta. the income elasticity of demand for pasta is

+4
Answers (1)
  1. 22 September, 14:04
    0
    The income elasticity of demand for pasta is - 0.4 based on the data from the question above. The answer to this problem can be solved using the elasticity formula which stated as ED = Q percent change / I percentage change where ED is the elasticity of demand, Q is the quantity of the product, and I is the consumer's income. (Calculation: - 4%/10%=-0.4)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A 10% rise consumer income results in a 4% decrease in the quantity demanded for pasta. the income elasticity of demand for pasta is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers