Calculate the income elasticity of demand

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Reference no: EM131004822

Suppose that market demand for answering machines is given by the expression Q_D = 1,000 – 150P+ 25I. Assume that per capita disposable income I = $200 and the price of answering machines is P = $10.

Calculate the price elasticity of demand for answering machines.

Calculate the income elasticity of demand.

Reference no: EM131004822

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