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It says: Using the figure, calculate the income elasticity of demand when the consumer income
increases from 60k to 150k and this is an inferior good. Assume the initial equilibrium point before
the change in income is at point C
Figure 4-11 before change in the income is at point C. (Hint; think alout the shif of demand curve.
Thos, find the points of Q bia you need to plag in the formals of income elaveity of demand For the
toolba, oress AIT+FIo iPC of NIT+FN+E1o iMar)

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It says Using the figure calculate the income elasticity o.pdf

  • 1. It says: Using the figure, calculate the income elasticity of demand when the consumer income increases from 60k to 150k and this is an inferior good. Assume the initial equilibrium point before the change in income is at point C Figure 4-11 before change in the income is at point C. (Hint; think alout the shif of demand curve. Thos, find the points of Q bia you need to plag in the formals of income elaveity of demand For the toolba, oress AIT+FIo iPC of NIT+FN+E1o iMar)