Your firm's research department has estimated the income elasticity of demand for Art Deco lawn furniture to be −0.85.You have just learned that due to an upturn in the economy,consumer incomes are expected to rise by 5 percent next year.How will this event affect your ordering decision for PVC pipe,which is the main component in your furniture?

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The Answer of Your firm's research department has estimated the income elasticity of demand for Art Deco lawn furniture to be −0.85.You have just learned that due to an upturn in the economy,consumer incomes are expected to rise by 5 percent next year.How will this event affect your ordering decision for PVC pipe,which is the main component in your furniture?

Your Firm's Research Department Has Estimated the Income Elasticity of Demand