Determine what is the income elasticity of demand

Reference no: EM13191799

Suppose the market demand curve for a product is given by: Qd = 500 - 15P + 20I and the market supply schedule is: Qd = -25 + 10P + 10K. The initial values are I = 10, K = 5.

At the market equilibrium, what is the price elasticity of demand and the income elasticity of demand?

Reference no: EM13191799

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