The quantity demanded of good X falls by 20 and, in response, ...

[a0266361136]

The quantity demanded of good X falls by 20 and, in response, your income goes down by 10 and, the income elasticity of demand would be:
 a. 2
 b. 4
 c. .5
 d. .20

Question 2

What is the equilibrium payoff for the stores?
 a. Megastore 95 and Superstore 80
 b. Megastore 305 and Superstore 55
  c. Megastore 65 and Superstore 285
  d. Megastore 165 and Superstore 115

[jamesnevil303]

Answer to Question 1

a

Answer to Question 2

a