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Discussion of Income Elasticity of Demand

When average consumer income increases from $40,000 to $44,000 in Mapleville, the quantity demanded of widgets went from 10 to 9 units per capita, even though the price of widgets and other products did not change.

What is the income elasticity of demand for widgets (using the midpoint method).

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M925428

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