The market demand for wheat is Q = 100 - 2p + 1p_b + 2Y.If the price of wheat,p,is $2,and the price of barley,p_b,is $3,and income,Y,is $1000,the income elasticity of wheat

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The income elasticity of demand for wheat can be calculated using the formula for income elasticity, which is the percentage change in quantity demanded divided by the percentage change in income. Given the demand function Q = 100 - 2p + 1p_b + 2Y, and substituting the given values (p = $2, p_b = $3, Y = $1000), we can calculate the coefficient of Y (income), which is 2, as the income elasticity of demand. However, to express it as a fraction of the total quantity demanded, we divide by the total quantity demanded at these prices and income levels, which gives us 2 * (1000/2099).

The Market Demand for Wheat Is Q = 100 -