Assume that as a result of an economic boom, the average annual income in Country A increased from $190,000 to $210,000. At the same time, the quantity of black caviar demanded per capita increased from 4.0 kilograms to 4.5 kilograms. Using the midpoint method, calculate the income elasticity of demand for black caviar. If necessary, round all intermediate calculations and your final answer to two decimal places.

Assume that as a result of an economic boom, the average annual income in Country A increased from $190,000 to $210,000. At the same time, the quantity of black caviar demanded per capita increased from 4.0 kilograms to 4.5 kilograms. Using the midpoint method, calculate the income elasticity of demand for black caviar. If necessary, round all intermediate calculations and your final answer to two decimal places.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 6E

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