Ask Question
BusinessBusiness
4 November, 02:04

Aquata always spends 30 % of her income on dinglehoppers. Assume that her income increases by some percentage while the price of dinglehoppers remains constant (and that all dinglehoppers cost the same). What is her income elasticity of demand for dinglehoppers?

+1
Answers (1)
  1. 4 November, 05:27
    0
    Answer: Income elasticity of demand refers to the sensitivity of the quantity demanded for a certain good to a change in real income of consumers who buy this good, keeping all other things constant.

    Aquata Income elasticity of demand for dingle hoppers will be higher.

    Explanation: Types of Income Elasticity of Demand

    High: A rise in income comes with bigger increases in the quantity demanded.

    Unitary: The rise in income is proportionate to the increase in the quantity demanded.

    Low: A jump in income is less than proportionate than the increase in the quantity demanded.

    Zero: The quantity bought/demanded is the same even if income changes

    Negative: An increase in income comes with a decrease in the quantity demanded.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Aquata always spends 30 % of her income on dinglehoppers. Assume that her income increases by some percentage while the price of ...” 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
You Might be Interested in
If the U. S. dollar becomes weaker in international markets, the net effects will include an increase in both short run aggregate supply (SRAS) and aggregate demand. a decrease in short-run aggregate supply (SRAS) and an increase in aggregate demand.
Answers (1)
What percentage of people in africa rely on solid fuel for cooking? 50% 60% 70% 80%?
Answers (1)
A scientific paper that has passed through the peer review process is more respected than one that has not. Why might a scientist value a peer-reviewed paper? A. The analysis of the experimental results is guaranteed to be entertaining. B.
Answers (1)
Economy a. gross investment equals depreciation economy b. depreciation exceeds gross investment economy c. gross investment exceeds depreciation refer to the information. positive net investment is occurring in:
Answers (1)
What happened to ordinary workers during the great depression?
Answers (1)
New Questions in Business
The Prepaid Insurance account had a beginning balance of $14,000 and an ending balance of $24,000. How will the increase be reported on the statement of cash flows?
Answers (1)
otato Company began the period with an accounts receivable balance of $2,693 and a balance in the allowance for doubtful accounts of $494 The following transactions occurred in Potato Company a.
Answers (1)
A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brand-whose products are priced at $8 apiece.
Answers (1)
The goal of the biological (ergonomic) approach to job design is: a. to make the work simple so that anyone can be trained quickly and easily to perform it. b.
No Answers
Perfect price discrimination describes a situation in which the monopolist a charges exactly two different prices to exactly two different groups of customers. b maximizes consumer surplus. c experiences a zero economic profit.
Answers (1)
Home » Business » Aquata always spends 30 % of her income on dinglehoppers. Assume that her income increases by some percentage while the price of dinglehoppers remains constant (and that all dinglehoppers cost the same).
Sign Up Forgot Password?