Let’s assume that in Camarillo the quantity demanded of iPad increases by 18% when income increases by 10%. What is the income elasticity of demand for iPad in Camarillo?

Can you explain the difference between an elastic and inelastic product?

DE According to the income elasticity formula, Income elasticity of demand = E=% change in quantity demanded + % change in income. By how much will popcorn sales increase if average income goes up by 9 percent? (Assume the income elasticity of popcorn is 3.29.) Instructions: Enter your response as a percentage rounded to one decimal place. percent

In the graph on the right, the demand for hot dog buns has changed because the price of hot dogs has risen from $2.80 to $3.30 per package. Hot dog buns 4.00 The cross-price elasticity of demand between hot dogs and hot dog buns is (Use the midpoint formula and enter your response rounded to wo decimal placet. Be sure to include the minus sign if necessay) 125 300 2.75 2.50- 225 2001.89 6.00d 17.0009,000 000 Quantly packages of buns per wook Price idollan per peckage of buns

e. Is the price elasticity of demand between $110 and $130 elastic, unit elastic, or inelastic? f. Will Erin's total revenue rise if she increases the price from $110 to $130?

Daria's income decreases from £80,000 to £54,000 per year. As a result, she increased her demand for take-away food by 30 percent and decreased her demand for new clothes by 20 percent. a) Calculate Daria's income elasticity of demand for (i) take-away food and (ii) new clothes. b) Comment on the nature of both items. In a newspaper article you read that the price for shirts increased by 23% and the demand for pullovers rose by 9%. c) State the type of elasticity you can calculate. Calculate the elasticity and discuss the economic intuition of your result. d) The newspaper looked at historical data and noticed that the elasticity calculated in part (c) increases. What does this imply for the relationship between shirts and pullovers?

Briefly explain why Income Elasticity of Demand (YED) is important for whether businesses choose to produce normal or interior goods.

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.)

Blake eats two bags of generic potato chips each day, and does not purchase any name-brand chips. Blake's hourly wage increases from $8 to $15, and he decides to eat one name-brand bag and one generic-brand bag each day. Calculate Blake's income elasticity of demand for generic potato chips.

Suppose the demand curve for an ipad \left(i\right) is given by Q ^{d}_{i} = 2300 - 3\cdot p_{i} - 0.2\cdot p_{y} where p_{i} = \$400 and p_{y} = \$200. a. Solve for the own price elasticity of demand.