Income elasticity of demand for silent velcro has been estimated at 0.7. In 2026, income is 50 Bobos and quantity demanded is 200. In 2027, income is 47. How many units are demanded?

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Chapter7: Demand And Supply
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Income elasticity of demand for silent velcro has been estimated at 0.7. In 2026,
income is 50 Bobos and quantity demanded is 200. In 2027, income is 47. How many
units are demanded?
Important: Do NOT use the midpoint method. Rather, calculate percent change relative
to 2026. Thus an increase from 100 to 106 would be a 6% increase.
Round to two decimal places If you predict a quantity of 10.125 quantity, enter 10.13.
Correct Answer
191.6 margin of error +/- 0.01
Transcribed Image Text:Income elasticity of demand for silent velcro has been estimated at 0.7. In 2026, income is 50 Bobos and quantity demanded is 200. In 2027, income is 47. How many units are demanded? Important: Do NOT use the midpoint method. Rather, calculate percent change relative to 2026. Thus an increase from 100 to 106 would be a 6% increase. Round to two decimal places If you predict a quantity of 10.125 quantity, enter 10.13. Correct Answer 191.6 margin of error +/- 0.01
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