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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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