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

Quizplus · Accepted Answer

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

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation