Answer to Question #166463 in Macroeconomics for Anchal Mishra

Question #166463

A 10 percent decrease in income decreases the quantity demanded of

compact discs by 3 percent. Find the income elasticity of demand for

compact discs.

Expert's answer

Income elasticity of demand"=\\%" change in demand"\/\\%" change in price"=3\\%\/10\\%=0.3"

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