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 a price of $0.40 per pound and a per capita income of $20,000, the demand for rice is 50 million tons per year. If per capita income increases to $20,500, what will be the quantity demanded of rice? If the price of rice increases for $0.40 to $0.41 per sound and income per capita remains the same, what will be the quantity demanded of rice?

Reference no: EM13740687

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