Author Question: If the income elasticity of demand for some good is 2.4, a 10% increase in income results in (Read 79 times)

fungirl · **on:** Oct 12, 2022

Question 1

Nancy's income has just risen from $950 per week to $1050 per week. As a result, she decides to double the number of movies she attends each week. Nancy's demand for movies is
◦ income elastic.
◦ price elastic.
◦ income inelastic.
◦ positively cross inelastic.
◦ price inelastic.

Question 2

If the income elasticity of demand for some good is 2.4, a 10% increase in income results in
◦ a 24% increase in the quantity demanded.
◦ a 24% decrease in quantity demanded.
◦ a 240% decrease in quantity demanded.
◦ a 240% increase in the quantity demanded.
◦ a 2.4% increase in the quantity demanded.

dianagarcia · **Reply #1 on:** Oct 12, 2022

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