1. tonya consumes 40 steaks a year when her yearly income is $40,000. after her income falls to $35,000 a year, she consumes only 35 steaks a year. Calculate her income elasticity of demand for steaks. 2. Figure: Midpoint Formula Refer to the figure. Using the midpoint as the base, what is the absolute value of the elasticity of demand between $40 and $60 ? A ) 0.8 . B) . C) 2.5 . D) 1.25 .

1. tonya consumes 40 steaks a year when her yearly income is $40,000. after her income falls to $35,000 a year, she consumes only 35 steaks a year. Calculate her income elasticity of demand for steaks. 2. Figure: Midpoint Formula Refer to the figure. Using the midpoint as the base, what is the absolute value of the elasticity of demand between $40 and $60 ? A ) 0.8 . B) . C) 2.5 . D) 1.25 .

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Maria has decided always to spend one third of her income on clothing. a. What is her income...

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Maria has decided always to spend one third of her income on clothing. a. What is her income elasticity of clothing demand? b. What is her price elasticity of clothing demand? c. It Marias tastes change and she decides to spend only one fourth of her income on clothing, how does her demand curve change? What is her income elasticity and price elasticity now?
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