5. Sam’s income band has been provided below for the past 5 years and he wants to understand about the elasticity of Income for the products he purchased. Year Income Product A Product B 2013 10,000 400 200 2014 12,000 500 300 2015 17,000 2100 1400 2016 17,500 2200 2200 2017 20,000 4,000 2400 1.Calculate the income elasticity for the year 2014,2015,2016 and 2017 for both the products A and B. Comment on what elasticity it is in each year

5. Sam’s income band has been provided below for the past 5 years and he wants to understand about the elasticity of Income for the products he purchased. Year Income Product A Product B 2013 10,000 400 200 2014 12,000 500 300 2015 17,000 2100 1400 2016 17,500 2200 2200 2017 20,000 4,000 2400 1.Calculate the income elasticity for the year 2014,2015,2016 and 2017 for both the products A and B. Comment on what elasticity it is in each year

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...

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