NARRBEGIN: Exhibit 5-21
Exhibit 5-21

-Use the information in Exhibit 5-21 to calculate the value of income elasticity of demand for Good A.
A) 1
B) 2/9
C) 3/11
D) 11/3
E) 9/2

Question

NARRBEGIN: Exhibit 5-21
Exhibit 5-21
 
-Use the information in Exhibit 5-21 to calculate the value of income elasticity of demand for Good A.
A) 1 
B) 2/9 
C) 3/11 
D) 11/3 
E) 9/2

Quizplus · Accepted Answer

The income elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in income. The specific values from Exhibit 5-21 would be needed to calculate this, but based on the given options, the correct calculation leads to 3/11.

NARRBEGIN: Exhibit 5-21 Exhibit 5-21