The demand for good X is given by Qx = 553 - 9Px + 0.03M. The price of the good is currently $20 and income is at $40,000. Compute the income elasticity of demand (rounding your answer to two decimal places as needed).

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter6: Elasticity
Section: Chapter Questions
Problem 3WNG: The quantity demanded of good X rises from 130 to 145units as income rises from 2,000 to 2,500 a...
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The demand for good X is given by Qx = 553 - 9Px + 0.03M. The price of the good is
-
currently $20 and income is at $40,000. Compute the income elasticity of demand
(rounding your answer to two decimal places as needed).
Transcribed Image Text:The demand for good X is given by Qx = 553 - 9Px + 0.03M. The price of the good is - currently $20 and income is at $40,000. Compute the income elasticity of demand (rounding your answer to two decimal places as needed).
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