Last year, Bing bought 30 widgets when his income was $50,000. This year, his income is $55,000, and he purchased 40 widgets Holding other factors constant and using the midpoint method, it follows that Bing's income elasticity of demand for widgets is approximately O43, and Bing regards widgets as elastic Ob-1/3, and Bing regards widgets as inferior goods O 3, and Bing regards widgets as normal goods Od 1/3, and Bing regards widgets as inferior goods
Last year, Bing bought 30 widgets when his income was $50,000. This year, his income is $55,000, and he purchased 40 widgets Holding other factors constant and using the midpoint method, it follows that Bing's income elasticity of demand for widgets is approximately O43, and Bing regards widgets as elastic Ob-1/3, and Bing regards widgets as inferior goods O 3, and Bing regards widgets as normal goods Od 1/3, and Bing regards widgets as inferior goods
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...
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