Solution-Calculate kevin income elasticity of demand

Calculate kevin income elasticity of demand

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Reference no: EM131962054

Kevin has just received a large promotion and his income has risen from $200 to $400 per week. As a result, his demand for good A has fallen from 10 units per week to 3 units per week.

a) Calculate Kevin's income elasticity of demand for good A.

b) Is good A a normal or inferior good for Kevin? Explain.

Reference no: EM131962054

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Calculate kevin income elasticity of demand

Reference no: EM131962054

Reference no: EM131962054

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