Lauren's salary decreases from $34,000 to $30,000. She decides to reduce the number of outfits she purchases each year from 20 to 19. Use the midpoint method to calculate the income elasticity of demand for new outfits. Round your answer to two decimal places. This good is units a normal good and income-inelastic. a normal good and income-elastic. an inferior good.

Suppose that consumers experience a 5 percent increase in income and purchase walking shoes increase by 6 percent.  What is the income elasticity for walking shoes?  (Give your answer to one decimal place.)

Calculate the Elasticity Coefficient for the following scenario. Patty bakes pies, she sells them for $10 each and sells about 55 pies per week. But the price of her ingredients increased so she' s contemplating a price increase. She will raise the price to $12 and she estimates her demand will fall to 50 pies per week. Calculate the elasticity coefficient for Patty's Pies. Are Patty's Pies elastic or inelastic? Should she raise her prices? Or keep them the same? You should be able to show your work.

If you know that your consumers have an income elasticity of +2.5, and you expect incomes to go up by 2% next year, what can you expect will happen to demand for your product?

If a complementary price of an item increases and I know the cross-price elasticity, how do I calculate sales of a item?

If a 50 percent increase in income increases the quantity of iPods demanded by 20 percent, the income elasticity of demand is equal to. (Enter your response rounded to two decimal places.)