Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x .Assume that P = $8,I = 200,and P x = $10.
-Given the above equation,the income elasticity of demand for noodles is _____.
A)5
B)0.5
C)2
D)2.5
E)1.6

Question

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The Answer of Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x .Assume that P = $8,I = 200,and P x = $10.
-Given the above equation,the income elasticity of demand for noodles is _____.
A)5
B)0.5
C)2
D)2.5
E)1.6