Calculate equilibrium price with increase in income

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Problem-

If income elasticity of demand of good X is 0.89, what will happen to equilibrium price if there is an increase in income of consumers? Draw a diagram to support your answer.

Summary

The problem belongs to Economics, Micro-economics and it is explain the calculating equilibrium price with increase in income of consumers with income elasticity of demand given. A diagram supporting the answer has been given in the answer.

Reference no: EM13825256

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