smuno3
Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

Congratulations! You have just landed your first job out of college as an economic analyst at the Bureau of Labor Statistics. Your starting salary is $55,000 per year; an increase of 250% per year over the salary you made at the local coffee shop. The corresponding table gives the percentage change in your purchases of each good after your income increases. Use this information to estimate your income elasticity of demand for each of the items.

Sagot :

DALAU

Answer:

If it served you, give me 5 stars please, thank you!

(a) Income elasticity for meals at restaurant:

= % Change in the quantity of meals at restaurants / % Change in the income of consumer

= (500 / 250)  

= 2

(b) Income elasticity for cups of coffee:

= % Change in the quantity of cups of coffee / % Change in the income of consumer

= 80 / 250

= 0.32

(c) Income elasticity for instant noodels:

= % Change in the quantity of instant noodles / % Change in the income of consumer

= -75 / 250

= -0.3

abiolataiwo2015

a. Income elasticity for meals at restaurant is 2.

b. Income elasticity for cups of coffee is 0.32.

c. Income elasticity for instant noodles is -0.3.

Income elasticity

a.  Income elasticity for meals at restaurant:

Income elasticity = % Change in the quantity of meals at restaurants / % Change in the income of consumer

Income elasticity = (500 / 250)  

Income elasticity = 2

b. Income elasticity for cups of coffee:

Income elasticity = % Change in the quantity of cups of coffee / % Change in the income of consumer

Income elasticity = 80 / 250

Income elasticity = 0.32

c. Income elasticity for instant noodles:

Income elasticity = % Change in the quantity of instant noodles / % Change in the income of consumer

Income elasticity = -75 / 250

Income elasticity = -0.3

Inconclusion the Income elasticity for meals at restaurant is 2, Income elasticity for cups of coffee is 0.32 and the income elasticity for instant noodles is -0.3.

Learn more about income elasticity here:https://brainly.com/question/15899715

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.