The coefficient of income in a regression of the quantity demanded of a commodity on price, income and other variables is 10. Calculate the income elasticity of demand for this commodity at income of $10,000 and sales of 80,000 units. What would be the income elasticity of demand if sales increased from 800,000 to 900,000 units and income rose from $10,000 to $11,000? What type of good is this commodity?
The coefficient of income in a regression of the quantity demanded of a commodity on price, income and other variables is 10. Calculate the income elasticity of demand for this commodity at income of $10,000 and sales of 80,000 units. What would be the income elasticity of demand if sales increased from 800,000 to 900,000 units and income rose from $10,000 to $11,000? What type of good is this commodity?
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 13E: Using the following equation for the demand for a good or service, calculate the price elasticity of...
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The coefficient of income in a regression of the quantity demanded of a commodity on price, income and other variables is 10.
- Calculate the income
elasticity of demand for this commodity at income of $10,000 and sales of 80,000 units. - What would be the income elasticity of demand if sales increased from 800,000 to 900,000 units and income rose from $10,000 to $11,000?
- What type of good is this commodity?
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