Answer to Question #49264 in Microeconomics for sudhanshu

Question

a consumer spends all her income on goods x and y if a 50% interest good x does not change the amount consumed of good y what is the elasticity of demand for good x

Answer 1

If consumer spends all her income on goods x and y if a 50% interest good x does not change the amount consumed of good y, the elasticity of demand for good x is Ed = 0/50% = 0, so these goods are goods that are independent.