Estimated the income elasticity of demand for blue-jeans

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The research department of the COLLEGE STUDENT BLUE-JEANS has estimated the income elasticity of demand for blue-jeans of the Gap Corporation to be 2. Further, most economic forecasts predict a 3% increase in incomes for students during the upcoming year. If among the blue-jeans sold to college students last year, 820,000 were of the Gap brand, please estimate the number of additional blue-jeans that Gap expects to sale in the upcoming year. Further, if the Gap Corporation has estimated that, on the average, one sales person is needed for every 800 blue-jeans sold annually, please estimate the number of additional sales persons Gap needs to hire in the upcoming year.

Reference no: EM13838157

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