QUESTION9 1 points f a consumer\'s income increases from $64,061 to $91,993 and

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QUESTION9 1 points f a consumer's income increases from $64,061 to $91,993 and the amount she chooses to buy of a good increases from 117 to 152, what is her income elasticity for this good? Do not forget to include the sign. QUESTION 10 What does your answer from the previous question tell you about this good? O This is a normal good for her. O This is an inferior good for her. 1 points QUESTION 11 1 pointsSave If a consumer's income decreasesfrom 569.881 to $30-107 and the amount she chooses to buy of a goodincreases from 61 to 83, what is her income elasticity for this good? Do not forget to include the sign. QUESTION 12 1 points What does your answer from the previous question tell you about this good? O This is a normal good for her. This is an inferior good for her. Click Save and Submit to save and submc. Click Save All Answers to save all angwens Save All Arswers Close Window

Explanation / Answer

Income Elasticity = % Change in Quantity Demanded / % Change in Income.

Qn.9) Answer: 0.69

Explanation:Income Elasticity = % Change in Quantity Demanded / % Change in Income.

% Change in Quantity Demanded= Change in Quantity Demanded / Original Qty Demand

= (152-117)/ 117= 0.29914529914

% Change in Income = Change in Income / Original Income

= (91993-64061) / 64061 = 0.43602191661

Therefore, Income Elasticity = (0.29914529914) / (0.43602191661)

= 0.68607858399 = +0.69

Qn.10) Answer: This is a normal good for her.

Explanation:Here, the value of Income Elasticity is 0.69 , and is positive. If the value is positive it means that the good is a normal good.

Qn.11) -0.81

Explanation: Income Elasticity = % Change in Quantity Demanded / % Change in Income.

% Change in Quantity Demanded= Change in Quantity Demanded / Original Quantity

= (89-61) /61=0.45901639344

% Change in Income = Change in Income / Original Income

= (30107-69881) / 69881

= -0.56916758489

Income Elasticity = (0.45901639344) / (-0.56916758489)

= -0.80646966838 = -0.81

Qn.12) This is an inferior good for her.

Explanation: Here, the value of income Elasticity is -0.81, which is negative in nature. If the value of income Elasticity is negative the good is said to be an inferior good.

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