What will be the quantity demanded of rice

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The price elasticity for rice is estimated to be -0.4 and the income elasticity is 0.8 . At the price of $0.40 per pound and a per capita income of $20,000, the demand for rice is 50 million tons per year. a. is rice an inferior good, a necessity, or a luxury? Explain b. if per capita income increases to $20,500, what will be the quantity demanded of rice? c. If the price of rice increases to $0.41 per pound and income per capita remains at $20000, what will be the quantity demanded.

Reference no: EM131000923

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