1.8 Suppose that the average income of a consumer decreases from R18 000 to R12 000. As a result, the quantity of Product A demanded by the consumer increases from 200 units to 280 units. What is the income elasticity of demand for product A if calculated using the ARC (midpoint) formula? A. 1.42 B. -0.83 C. 0.83 D. -1.42

1.8 Suppose that the average income of a consumer decreases from R18 000 to R12 000. As a result, the quantity of Product A demanded by the consumer increases from 200 units to 280 units. What is the income elasticity of demand for product A if calculated using the ARC (midpoint) formula? A. 1.42 B. -0.83 C. 0.83 D. -1.42

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 16SQ

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