(Figure: Good Y and Good X V) In panel (a), the price of good X is $1.50 per unit and the price of good Y is $3 per unit. In panel (b), the consumer's income increased from $400 to $480.
Panel (a) Panel (b)

a. Using panel (a), calculate the income elasticity of demand for good X. What type of good is X?
b. Using panel (b), calculate the income elasticity of demand for good X. What type of good is X?

Question

(Figure: Good Y and Good X V) In panel (a), the price of good X is $1.50 per unit and the price of good Y is $3 per unit. In panel (b), the consumer's income increased from $400 to $480.
Panel (a) Panel (b)  
  
​ 
a. Using panel (a), calculate the income elasticity of demand for good X. What type of good is X?
b. Using panel (b), calculate the income elasticity of demand for good X. What type of good is X?

Quizplus · Accepted Answer

The Answer of (Figure: Good Y and Good X V) In panel (a), the price of good X is $1.50 per unit and the price of good Y is $3 per unit. In panel (b), the consumer's income increased from $400 to $480.
Panel (a) Panel (b)  
  
​ 
a. Using panel (a), calculate the income elasticity of demand for good X. What type of good is X?
b. Using panel (b), calculate the income elasticity of demand for good X. What type of good is X?

(Figure: Good Y and Good X V) in Panel (A)